VANCOUVER, British Columbia, March 16, 2021 (GLOBE NEWSWIRE) – Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Company”) announces that it has entered into a bridge credit facility (the “Establishment“) with Our Moonrider (“Moonrider“), a significant shareholder of the Company.
Under the Facility, the Company may borrow up to CA $ 1,000,000 from Moonrider, which Facility is repayable on the first of six months after closing, upon the occurrence of various standard events of default, or upon closing of any debt or equity financing by the Company for an amount greater than C $ 1.5 million. The Facility will bear interest at a rate of 12% per annum, payable on maturity of the Facility.
Under the Facility, Moonrider will receive bonus warrants each time it is drawn on the Facility allowing it to acquire ordinary shares of the Company. The number of bonus warrants that may be issued at each drawdown will be determined by dividing the amount of the drawdown by the price of the Company’s ordinary shares on the drawdown date. The exercise price of the warrants will be the market price on the date of issue. The bonus warrants will be exercisable for a period of 12 months from each drawing.
The full drawdown of the C $ 1,000,000 facility has been completed, giving Moonrider 4,255,319 bonus warrants with an exercise price of $ 0.23 per share and an expiration date of March 16, 2022. .
The Bonus Warrants are subject to the approval of the TSX Venture Exchange.
Update of operations
The proceeds from the plant will allow the Company to advance the critical work required to prepare for its next drilling program, while it works to complete a private placement financing, as described in the financing update. below.
The proceeds from the plant will be used by the company for current working capital expenses and to complete civil works in preparation for the start of drilling, such as the construction of roads, drilling platforms and the construction of oil rigs. ‘a new exploration camp at the company’s Rodruin project.
The Company received an irrevocable subscription agreement signed by CAPM Mining & Manufacturing Company (“CAPM”) on October 22, 2020. Despite frequent requests from the Company, CAPM has not returned the subscription funds for the securities it agreed to buy. The Company has concluded that CAPM does not intend to complete the financing to which it is committed and the Company will not proceed with this private placement.
The Company has decided to seek other financing alternatives. Discussions are underway with potential strategic investors and the Company will make a public announcement on the agreed financing terms.
“I would like to thank OU Moonrider for their continued support to Aton ”, said Bill Koutsouras, chairman of the board of directors of Aten. “This bridging loan will allow Aton to immediately begin work on its next drilling program, while we assess other financing alternatives available to the Company ”.
About Aton Resources Inc.
Aton Resources Inc. (AAN: TSX-V) focuses on its 100% owned Abu Marawat concession (“Abu Marawat”), located in the Arab-Nubian Shield of Egypt, approximately 200 km north of the gold mine world-class Sukari from Centamin. Aton has identified numerous gold and base metal exploration targets at Abu Marawat, including the Hamama deposit to the west, the Abu Marawat deposit to the northeast, and the Rodruin advanced exploration prospect to 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 have potential for the development of a variety of styles of precious and base metal mineralization. Abu Marawat is 447.7 km away2 in size and is located in an area of excellent infrastructure; a four-lane motorway, a 220 kV power line and a water pipeline are in the immediate vicinity, as are the international airports of Hurghada and Luxor.
For more information on Aton Resources Inc., please visit us at www.atonresources.com or contact:
President of the council
Phone. : +1 345 525 2512
E-mail: [email protected]
Note regarding forward-looking statements
Some of the statements contained in this press release are forward-looking statements. Since forward-looking statements deal with future events and conditions; by their nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.