Aton to Raise $3.0 Million for Continued Exploration at Abu Marawat
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 7, 2016) -
Not for distribution to United States newswire services or for dissemination in the United States
Aton Resources Inc. (TSX VENTURE:AAN) ("Aton" or the "Corporation") is pleased to announce that it has signed a term sheet with Sprott Private Wealth LP and one of its affiliates (collectively, "Sprott"), as finders, as part of a $3.0 million non-brokered private placement (the "Offering"). The net proceeds from the Offering will be used to fund continued exploration and development activities at Aton's 100% owned Abu Marawat concession, located in Egypt.
Terms of the Offering:
- 46,200,000 units of the Corporation (the "Units") at a price of $0.065 per Unit (C$ 3,003,000).
- The Offering may be increased up to a total of 53,130,000 Units (C$ 3,453,450), at the Corporation's election.
- Each Unit will consist of one common share in the capital of the Corporation (a "Common Share") and one common share purchase warrant (a "Warrant").
- Each Warrant will be transferable and entitle the holder to acquire one Common Share (a "Warrant Share") for five years from the Closing Date at a price of C$ 0.08.
- The Corporation will pay a 6.0% cash commission on Units placed by Sprott and other finders.
- On the Closing Date the Corporation shall issue to Sprott the number of non-transferable common share purchase warrants ("Finder Warrants") that equals 5.0% of the Units placed by Sprott. Each Finder Warrant permits the purchase of one Warrant Share for five years from the Closing Date at C$0.075. Finder Warrants will only be issued to Sprott, no other finders will be issued Finder Warrants.
- Pursuant to the National Instrument 45-102, Resale of Securities, and possibly TSX Venture Exchange (the "Exchange") Policy, securities issued pursuant to the Offering shall be subject to a restricted resale period of four months commencing on the Closing Date.
- The securities issued pursuant to the Offering are not, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"). Accordingly, securities acquired by US buyers will be subject to additional restrictions on resale under the 1933 Act.
- The Offering will close at December 6th, 2016, or such other date or dates as the Corporation and the Finder may agree.
"We are extremely pleased to have attracted the attention of Sprott," said Mark Campbell, CEO of Aton. "Sprott Private Wealth LP, and one of its affiliates, are some of world's preeminent resource-focused firms and I believe that their involvement in this offering speaks to the quality of our team and the Abu Marawat concession. The funds raised by this offering will enable us to advance and unlock the potential of the Abu Marawat concession. Right now, we are planning a ground magnetic, ground EM (electromagnetic) and downhole EM geophysical surveys to identify massive sulphide targets at the Hamama project, which will be the focus of the next drilling campaign."
Activity update:
- Aton expects to announce assay results for the remaining holes of the 38-diamond drill hole program, totaling 3,428.20 metres, at Hamama West, one of three zones that comprise Hamama, within the next several weeks.
- The Corporation is planning a ground EM (electromagnetic) and downhole EM geophysical surveys to identify massive sulphide targets at the Hamama project.
- Aton is working with Cube Consulting and expects to announce a NI 43-101 compliant initial resource at Hamama West by year end.
About the Hamama project
The Hamama project ("Hamama") is located at the western end of the 40km long gold trend at the Abu Marawat concession and is comprised of three zones, Hamama West, Hamama Central and Hamama East. The mineralized horizon at Hamama has a strike length of approximately 3km and remains open to the west and the east. Mapping indicates that the horizon may extend another 3.2kms to the east, which would more than double Hamama's current strike length. Further exploration work will be conducted to confirm this. Aton's most recent exploration activities have been focused at Hamama West, where it recently completed 38 diamond drill holes in 3,428 metres. Hamama West has been deeply weathered into a soft, friable oxidized gossan blanket, referred to as a gold-oxide cap, which is over 900 metres long, up to 110 metres wide and has an average vertical depth of 35 metres. Importantly, sulphide mineralization has been traced up to 180 metres in depth at Hamama West and remains open. Aton plans to announce a NI 43-101 compliant resource for Hamama West by year end.
About Aton Resources Inc.
Aton Resources Inc. (TSX VENTURE:AAN) is focused on its 100% owned Abu Marawat concession, located in Egypt's Arabian-Nubian Shield, approximately 400km north of Centamin's Sukari gold mine. Aton has identified a 40km long gold trend at Abu Marawat, anchored by the Hamama project in the west and the Abu Marawat gold deposit in the east. In addition to the Hamama project and the Abu Marawat gold deposit, the trend contains numerous gold exploration targets, including two historic gold mines. Abu Marawat is over 738 sq. km in size and is located in an area of excellent infrastructure, a four-lane highway, railway line, 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.
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities 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.
Contact
Aton Resources Inc.
Mark Campbell
President and Chief Executive Officer
+1-936-689-2589
mcampbell@atonresources.com
Aton Resources Inc.
Blaine Monaghan
Vice President, Investor Relations
+1 (604) 331-5092
ir@atonresources.com