Aton Announces Bridge Loan and Operations Update
March 31 2021 - 1:52PM
Aton Resources Inc. (AAN: TSX-V) ("Aton" or the "Corporation")
announces that it has entered into an additional bridge loan (the
"
Loan") with OU Moonrider
("
Moonrider"), a significant shareholder of the
Corporation.
The Loan
The Corporation has borrowed C$2,000,000 from
Moonrider, which Loan is repayable on the earlier of six months
from closing, on the occurrence of various standard events of
default, or on the closing of any debt or equity financing by the
Corporation in an amount in excess of C$5.0 million. The Loan will
bear interest at a rate of 12% per annum, payable when the Loan is
due.
Moonrider will be issued 8,510,638 bonus
warrants with an exercise price of $0.235 per share and an
expiration date of March 31, 2022.
The bonus warrants are subject to the approval
of the TSX Venture Exchange.
Operations Update
The Corporation has commenced the process of
evaluating drilling contractors and civil works contractors in
preparation for drilling to commence at Hamama and Rodruin. The
Loan proceeds has put the Corporation in a position to finalize and
sign commitments with such contractors and resume drilling in
advance of completion of an equity financing.
The proceeds of the Loan will be used by the
Corporation for ongoing working capital expenses, finalizing a
drill contract, acquisition of critical capital items required,
completion of civil works in preparation to commence drilling, such
as constructing roads, drill pads, constructing a new exploration
camp at the Corporation’s Rodruin project and resuming the drilling
program.
“I would like to thank OU Moonrider for their
continued support of Aton,” said Bill Koutsouras, Aton’s
Chairman of the Board. “This bridge loan strengthens our capital
position to continue with all work required to commence our next
drilling program, while we continue our ongoing discussions with
potential strategic investors to evaluate other financing
alternatives available to the Corporation. It also avoids a
significantly dilutive equity financing being completed at this
time”.
About Aton Resources Inc. Aton
Resources Inc. (AAN: TSX-V) is focused on its 100% owned Abu
Marawat Concession (“Abu Marawat”), located in Egypt’s
Arabian-Nubian Shield, approximately 200 km north of Centamin’s
world-class Sukari gold mine. Aton has identified numerous gold and
base metal exploration targets at Abu Marawat, including the Hamama
deposit in the west, the Abu Marawat deposit in the northeast, and
the advanced Rodruin exploration prospect in the south of the
Concession. Two historic British gold mines are also located on the
Concession at Sir Bakis and Semna. Aton has identified several
distinct geological trends within Abu Marawat, which display
potential for the development of a variety of styles of precious
and base metal mineralisation. Abu Marawat is 447.7 km2 in size and
is located in an area of excellent infrastructure; a four-lane
highway, a 220kV power line, and a water pipeline are in close
proximity, as are the international airports at Hurghada and
Luxor.For further information regarding Aton Resources Inc., please
visit us at www.atonresources.com or contact:BILL
KOUTSOURASChairman of the Board Tel: +1 345 525 2512Email:
info@atonresources.com
Note Regarding Forward-Looking
Statements Some of the statements contained in this
release are forward-looking statements. Since forward-looking
statements address future events and conditions; by their very
nature they involve inherent risks and uncertainties. Actual
results in each case could differ materially from those currently
anticipated in such statements. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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