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VANCOUVER, British Columbia, Feb. 14, 2018 (GLOBE NEWSWIRE) — Aton Resources Inc. (TSX-V:AAN) (“Aton” or the “Company”) is pleased to announce that it has closed its non-brokered private placement. The Company issued 40,651,622 units (the “Units”) at a price of $0.04 per Unit (the “Offering”) for gross proceeds of $1,626,064.88. Each Unit consists of one common share (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one common share at $0.05 until February 13, 2023.
The net proceeds of the Offering will be used to fund further exploration activities at the Company’s 100% owned Abu Marawat Concession, located in Egypt. In addition, part of the funds will be used to fund Aton’s general and administrative expenses, and for working capital purposes.
“I am very pleased to announce the closing of this Offering,” said Mark Campbell, Aton’s CEO and President. “Due to great demand, we had to increase the size of the Offering from $1.0 million to $1.6 million. This just demonstrates investors’ belief in our development project at Hamama and our being the first company in Egypt to issue their intent to declare commerciality since Centamin 17 years ago in addition to our exciting new discovery at Rodruin, which shows the world-class nature of our district sized Abu Marawat concession area. Another exciting development, is that for the first time in our history, we have had participation from Egyptian investors who believe in the future of mining in Egypt and in Aton’s role within that. I would like to thank our investors, in particular Moonrider, for their continued support and our employees, on whom we rely heavily in pursuit of our vision and whose dedication has allowed Aton Resources to continually achieve its goals.”
The Offering attracted strong insider participation, with inside OU Moonrider (“Moonrider”) increasing its ownership of the Company maintaining its position. Moonrider acquired 25,000,000 Shares in the Offering, representing approximately 11.15% of Aton’s issued and outstanding common shares. Moonrider previously held 39,134,154 common shares of the Company. Following the closing, Moonrider owns and controls 64,134,154 common shares of Aton, representing approximately 28.59% of the issued and outstanding common shares of the Company as of the date hereof. Prior to the closing of this offering Moonrider owned 21.31% of Aton. Furthermore, Moonrider acquired 25,000,000 Warrants in this Offering, which entitles Moonrider to acquire an additional 25,000,000 common shares of the Company. If Moonrider was to exercise all of its Warrants, as of the date hereof, including 23,346,154 share purchase warrants from earlier financings, Moonrider would own approximately 41.26% of the issued and outstanding common shares of the Company after giving effect to such exercise (assuming no other convertible securities of Aton are exercised).
Aton has also been advised that Moonrider acquired these securities for investment purposes and may in the future, depending on market and other conditions, increase or decrease their beneficial ownership of the Company’s securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities. A copy of the early warning report, in connection with the acquisition by Moonrider, will be available on SEDAR at www.sedar.com and may also be obtained by contacting Aton.
In connection with the closing of the Offering, the Company paid finder’s fees of 6% cash totalling $24,300.00.
All securities issued in the Offering, including shares issuable on exercise of the warrants, will be subject to a four‐month hold period; expiring June 14, 2018, during which time the securities may not be traded.
Upcoming milestones in 2018:
- Initial assay results at its new Rodruin Discovery;
- Commencement of exploration drilling program at Rodruin;
- Completion of its study in support of its declaration of commerciality by Wardell Armstrong in support of its declaration of commerciality at Hamama.
About Aton Resources Inc.
Aton Resources Inc. (TSX-V:AAN) 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 Sukari gold mine. Aton has identified a 40 km long gold mineralized trend at Abu Marawat, anchored by the Hamama deposit in the west and the Abu Marawat deposit in the east, containing numerous gold exploration targets, including three historic British mines. Aton has identified several distinct geological trends within Abu Marawat, which display potential for the development of RIRG and orogenic gold mineralization, VMS precious and base metal mineralization, and epithermal-IOCG precious and base metal mineralization. Abu Marawat is over 738km2 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.
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.
The securities described in this news release have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.