VANCOUVER, British Columbia, Dec. 17, 2019 (GLOBE NEWSWIRE) -- Aton Resources Inc. (AAN:TSX-V) ("Aton" or the "Corporation") announces that it has entered into a bridge loan facility (the "Facility") with Ou Moonrider ("Moonrider"), a significant shareholder of the Corporation. Pursuant to the Facility, the Corporation may borrow up to C$300,000.00 from Moonrider, which Facility is repayable on the earlier of six months from closing, on the occurrence of various standard events of default, or on the closing of any debt or equity financing by the Corporation in an amount in excess of C$ 1.5 million. The Facility will bear interest at a rate of 10% per annum, payable when the Facility is due.
In connection with the Facility, Moonrider will be issued bonus warrants upon each drawdown on the Facility entitling it to acquire common shares of the Corporation at a price of $0.05 per share. The number of bonus warrants issuable upon each drawdown shall be determined by dividing the drawdown amount by the share price of the Corporation’s common shares on the date of drawdown. The bonus warrants will be exercisable for a period of 12 months from each drawdown.
An initial drawdown under the Facility of C$82,000 has been completed entitling Moonrider to 2,733,333 bonus warrants with an exercise price of $0.05 per share and an expiration date of December 17, 2020.
The proceeds of the Facility will be used by the Corporation to fund further work at its Abu Marawat Concession, and for general working capital purposes, while the Company awaits its Exploitation License at its Hamama development project.
The Facility is subject to the approval of the TSX Venture Exchange.
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. Three historic British mines are also located on the Concession at Sir Bakis, Semna and Abu Garida. 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 over 596 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:
President and Chief Executive Officer
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.