Egypt explorer Aton announces private placement of up to C$5 million and 10

1 share consolidation

Not for distribution to United States newswire services or for dissemination in the United States

VANCOUVER, British Columbia, July 29, 2020 (GLOBE NEWSWIRE) -- Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Company") today announces a non-brokered private placement of up to C$5 million (the “Private Placement”) through the issuance of up to 125,000,000 units of the Company (each a “Unit”) at a price of $0.04 per Unit.  Each Unit consists of one common share of the Company, and one half of a share purchase warrant (each whole warrant a “Warrant”) entitling the holder to acquire an additional common share of the Company (a “Warrant Share”) for a period of two years from closing at a price of $0.08 per Warrant Share. The Company expects to close the Private Placement on or around August 21, 2020, subject to the TSX Venture Exchange’s (the “TSXV”) approval of a discretionary waiver of the $0.05 minimum pricing requirement. 

Aton may accelerate the expiry date of the Warrants by giving notice to the warrant holders if the Company’s common shares have a closing price on the TSX Venture Exchange (or such other exchange on which they may be traded at such time) of greater than $0.12 per share for a period of 30 consecutive trading days. In such event, the Warrants will expire on the 30th day after the date on which such notice is given, which notice shall be deemed to have been delivered to the holders three business days after it has been sent by Aton to the holders by regular mail.

The net proceeds from the Private Placement will be used to fund continued exploration and development activities at Aton’s Abu Marawat Concession, located in Egypt and for general corporate purposes.

All shares issued in the Private Placement will be subject to a four month hold period from the date of issuance, in accordance with applicable securities laws. Completion of the Private Placement is subject to approval by the TSXV.

Share Consolidation

The Company’s directors have approved a 10:1 share consolidation, which the Company proposes to implement prior to the closing of the Private Placement, with the result that the Units will be issued on a post-consolidated basis.  The consolidation is subject to the approval of the TSXV.   A further announcement will be made when the effective date of the consolidation is known.