Aton Welcomes New Strategic Investor

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VANCOUVER, British Columbia, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Aton Resources Inc. (TSX-V: AAN) (“Aton” or the “Company”) is pleased to announce further to its news release of July 29, 2020 that it has received subscriptions for the purchase of 17,915,000 units (the “Units”) at a price of $0.40 per Unit (the “Offering”) for gross proceeds of $7,166,000. Each Unit consists of one common share (a “Share”) and one half of a share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to purchase an additional common share at $0.80 for a period of three years from closing. The Offering may close in one or more tranches.

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 working capital requirements.  

All securities to be issued pursuant to the Offering will be subject to a four month hold period from the closing date under applicable securities laws in Canada and among other things, receipt by Aton of all necessary regulatory approvals, including the Exchange and required shareholder approval.

MEDAF Mining and Manufacturing Company (‘MEDAF”) has subscribed for 17,500,000 Units for a total investment of $7 million. As MEDAF will become an insider of the Company at closing, it is required to file a Personal Information Form (a “PIF”) with the TSX Venture Exchange (the “Exchange”) in connection with the Offering, and the closing of the Offering will take place following the completion by the Exchange of its customary PIF review.

“A new chapter in Aton’s story is unfolding.   I am very pleased to welcome MEDAF as a new strategic investor. MEDAF is a Kuwaiti-Egyptian business partnership in Egypt, and is one of the fastest growing holding groups in the region. 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,” said Mark Campbell, Aton’s President and CEO. “Furthermore, the recent success of EMRA’s gold bid round in attracting some major foreign companies to bid such as Barrick Gold, La Mancha & Centamin, vindicates the long held view by Aton that Egypt is a world class exploration destination and supports Aton as a first mover in Egypt.”