Not for distribution to United States newswire services or for dissemination in the United States
VANCOUVER, British Columbia, May 28, 2018 (GLOBE NEWSWIRE) -- Aton Resources Inc. (TSXV:AAN) (“Aton” or the “Corporation") is pleased to announce that it has closed its non-brokered private placement of 43,493,858 units for proceeds of $1,957,223.61 (the “Private Placement”). Sandstorm Gold Ltd. (“Sandstorm”) acquired 40,000,000 units in the Private Placement for proceeds of $1,800,000. Additionally, Sandstorm paid Aton $300,000 for a 1% Net Smelter Royalty over the Abu Marawat Concession Area (see news release dated May 9, 2018).
Each Unit consists of one common share in the capital of the Corporation (a “Common Share”) and one half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant is transferable and entitles the holder to acquire one Common Share at a price of $0.08, until May 28, 2023. The Common Shares and the Warrants comprising the Units issued in the Private Placement and any Common Shares issued on the exercise of the Warrants are subject to a four-month hold period, which ends on September 29, 2018.
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. All currency amounts in Canadian dollars.
In connection with the closing of the Private Placement, the Corporation paid finder’s fees of 6% cash totalling $6,210.00.
Aton’s President & CEO Mark Campbell commented, “We are extremely pleased to have Sandstorm as an investor in Aton and believe that their involvement with Aton speaks to the quality of our team and our assets. The funds from the Private Placement and Royalty will allow Aton to continue advancing and unlocking the value of the Abu Marawat concession. Another notable development is the study commissioned by Egyptian President El Sisi, by Wood Mackenzie to review the Egyptian Mining Law and regime and by August 2018 to make recommendations and a plan for implementation, to bring reform. In my 23 years of being involved with mining in Egypt, this is the first time that this has occurred.”
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, Sandstorm acquired an aggregate of 40,000,000 common shares (“Aton Shares”) and 20,000,000-share purchase warrants (“Aton Warrants”) of Aton. Sandstorm acquired the Aton Shares and Aton Warrants through the Private Placement.
With the acquisition of Aton Shares, Sandstorm now holds approximately 14.94% of the outstanding common shares. Sandstorm is only entitled to exercise, from time to time, such number of Aton Warrants held by it such that, after the applicable exercise, the number of Aton Shares then owned by Sandstorm and its affiliates shall not exceed 19.99% of the then issued and outstanding Aton Shares.
The acquisition of the Aton Shares by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire additional securities of Aton, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. Sandstorm has agreed not to dispose of any Common Shares or Warrants for a minimum of twelve (12) months from the date of closing.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by Sandstorm on Aton’s SEDAR profile at www.sedar.com . About Aton Resources Inc.
Aton Resources Inc. (AAN: TSX-V) is focused on its 100% owned Abu Marawat Concession (“Abu Marawat”), located in Egypt’s Arabian-Nubian Shield, approximately 200 km north of Centamin’s Sukari gold mine. Aton has identified a 40 km long gold mineralized trend at Abu Marawat, anchored by the Hamama deposit in the west and the Abu Marawat deposit in the east, containing numerous gold exploration targets, including three historic British mines. Aton has identified several distinct geological trends within Abu Marawat, which display potential for the development of RIRG and orogenic gold mineralization, VMS precious and base metal mineralization, and epithermal-IOCG precious and base metal mineralization. Abu Marawat is over 738km 2 in size and is located in an area of excellent infrastructure; a four-lane highway, 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 or contact:
Mark Campbell President and Chief Executive Officer Tel: +20227377274 Email: mcampbell@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.
