- Aton Resources (AAN) has raised more than C$7.16 million in a private placement to fund exploration work at its Abu Marawat Concession
- The company issued a total of 17,915,000 units at a price of $0.40 each, consisting of one common share and one-half of a common share purchase warrant
- Each whole warrant will be exercisable at a price of $0.80 per share for a period of three years
- MEDAF Mining and Manufacturing Company subscribed for 17,500,000 of the units on offer, representing a total $7 million investment
- Aton Resources (AAN) is currently up 7.14 per cent to $0.30 per share at 2:39pm EDT
Aton Resources (AAN) has raised more than C$7.16 million in a private placement to fund exploration work at its Abu Marawat Concession.
Under the terms of the placement, the Vancouver-based company issued a total of 17,915,000 units at a price of $0.40 each. These units are comprised of one common share in Aton and one-half of a common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.80, exercisable over a period of three years from the date of issuance.
MEDAF Mining and Manufacturing Company, a Kuwaiti-Egyptian business partnership, subscribed for 17,500,000 of the units on offer, representing a total investment of $7 million and a 43.78 per cent shareholding on a partially diluted basis.
The investment offers MEDAF the right to appoint three nominees to Aton’s Board of Directors, provided MEDAF’s shareholding remains above 30 per cent.
Mark Campbell, President and CEO of Aton Resources, said a new chapter in the company’s history is unfolding.
“For over 15 years MEDAF has been present in the Egyptian mining industry, where they are involved in the mining of rock phosphate, gold, iron and chromium ore and Feldspar.
“MEDAF’s financial capacity will give Aton more flexibility in determining how it goes about future financings,” he added.
Located in Egypt, Aton’s wholly owned Abu Marawat Concession sits within the prolific Arabian-Nubian Shield, approximately 200 kilometres north of Centamin’s world-class Sukari gold mine.
A number of gold and base metal exploration targets have been identified at the property, including the Hamama deposit in the west, the Abu Marawat deposit in the northeast, and the Rodruin prospect in the south.
Aton Resources (AAN) is currently up 7.14 per cent to $0.30 per share at 2:39pm EDT.
