Not for distribution to United States newswire services or for dissemination in the United States
VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) -- Aton Resources Inc. (TSX-V:AAN) ("Aton" or the "Corporation") is pleased to announce that it has signed a $2.1 million financing package (the "Transaction") with Sandstorm Gold Ltd. ("Sandstorm"), which includes the purchase of a royalty by Sandstorm and significant participation by Sandstorm in a $3 million private placement being undertaken by the Corporation (the "Private Placement").
The net proceeds from the royalty sale and the Private Placement will be used to fund continued exploration and development activities at Aton's Abu Marawat concession, located in Egypt.
Private Placement Highlights:
- Non-brokered Private Placement Financing of up to 66,700,000 units (the "Units") at $0.045 per unit for total proceeds of up to $3,001,500.
- Each Unit will consist of one common share in the capital of the Corporation and one half of one common share purchase warrant.
- Each whole warrant will entitle the holder to acquire one additional common share for five years from the closing of the Private Placement at a price of $ 0.08 per common share.
- The Private Placement will close on May 15, 2018, or such other date or dates as the Corporation may decide.
- Securities issued pursuant to the Private Placement shall be subject to a restricted resale period of four months from closing.
Sandstorm Transaction
Sandstorm has agreed to subscribe for 40,000,000 Units for total proceeds of $1.8 million and to pay Aton $300,000 in consideration for it granting Sandstorm a 1% Net Smelter Royalty over the Abu Marawat Concession Area. Sandstorm has also agreed not to dispose of any Units for a minimum of twelve (12) months from the date of closing.
"We are extremely pleased to have attracted the interest of Sandstorm," said Mark Campbell, CEO of Aton. "Sandstorm is one of world's preeminent resource-focused royalty firms and I believe their involvement and partnership with Aton speaks to the quality of our team and our assets. These funds will help us to advance and unlock the value of the Abu Marawat concession. Right now, we are working toward preparing everything at Rodruin, which will be the focus at the start of the next drilling campaign. We have signed a drilling contract with Capital Drilling Ltd, to carry out our drilling program at Rodruin, along with some other areas within our concession area and they will mobilize their multi purpose rig into Rodruin after the Ramadan holiday."
Sandstorm's President and CEO Nolan Watson commented, "We are glad to be contributing to the next phase of exploration at Aton's Abu Marawat project. There are a number of high quality gold targets on the extensive land package and the Aton team is putting together a story that has district-scale potential."
All dollar amounts in this news release are in Canadian dollars. The Private Placement and the transaction with Sandstorm are subject to the final approval of the TSX Venture Exchange.
Activity update:
- Access road construction is continuing at Rodruin, and it is estimated that the road will reach the main western workings before the Hamama Camp shuts down for the Ramadan break.
- Preparation is underway to begin the drilling campaign at Rodruin and other selected areas at Abu Marawat. The Corporation has secured a rig from Capital Drilling and this has now been mobilized into Egypt. The drilling program will begin after the Ramadan holiday.
- Laboratory testwork has been completed at the Soil Mechanics and Geotechnical Engineering Research Institute (Housing and Building National Research Centre) in Cairo on the geotechnical samples collected from the trial pits in the Wadi Um Salamat area for the Hamama West heap leach facility design work, and the final report received.
- A short programme of excavator trenching has been completed at Hamama East to test for possible surface zones of Au and Zn oxide mineralisation. Samples have been dispatched to ALS Minerals in Romania, and results are expected soon.
- A preliminary programme of surface sampling has been undertaken over the Zeno prospect area. Numerous significant ancient workings have been identified at the Zeno area, and visible gold has been identified from several samples. Samples have been dispatched to ALS Minerals in Romania, and results are expected soon.
- Aton is working with Wardell Armstrong to complete its study in support of its declaration of commerciality at its Hamama project and expects this to be completed by the end of May as planned.
About Aton Resources Inc.
Aton Resources Inc. (TSX-V:AAN) is focused on its 100% owned Abu Marawat concession, 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 738km2 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.