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Be the first with the news that moves the market- Aton Resources Inc (TSXV:AAN) has been granted a three-year exploration extension on its Abu Marawat Gold Concession in Egypt
- Over the next three years, the company will continue to explore sites within the Abu Marawat claim, while awaiting Egypt’s planned mining reforms to finalise
- As a result, Aton will not need to enter into a joint venture agreement with the state-owned Mineral Resource Authority to develop Abu Marawat
- Instead the company expects Egypt will develop new tax and royalty concessions to manage mining companies in the region
- Aton Resources Inc (AAN) is holding steady, with shares trading for C$0.03 and a market cap of $9.99 million
Aton Resources Inc (TSXV:AAN) has been granted an exploration extension on its Abu Marawat Gold Concession in Egypt.
After negotiating with Egypt’s Mineral Resource Authority and Ministry of Petroleum, the company was granted a final three-year final exploration period for the property.
Over the next three years, the company will continue to explore sites within the Abu Marawat claim, while awaiting Egypt planned mining reforms to finalise. The company hopes that, once the reforms come into effect, it will be able to negotiate a more attractive resource agreement with the Mineral Resource Authority.
Egypt’s mining reforms are aimed at making the country more attractive to resource companies.
By waiting three-years, Aton will not need to enter into joint venture agreement with the state-owned Mineral Resource Authority. Instead the company expects Egypt will develop new tax and royalty concessions to manage mining companies in the region.
While the extension will forestall Aton developing mineral deposits on the property, it can still declare any commercially viable discoveries during the three-year period.
Mark Campbell, President and CEO of Aton, said he and the company are very pleased with the extension.
“It will allow us to carry on with an aggressive three year work program that we have planned for our targets such as Rodruin and Abu Gaharish, as well as at Hamama West while allowing us to negotiate with the Egyptian authorities a transition from the existing production sharing agreement regime to the new tax, rent and royalty regime,” he said.
Aton Resources Inc (AAN) is holding steady, with shares trading for C$0.03 at 2:51am EST.
