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Aton Announces Private Placement of up to $3 Million, Shares for Debt Settlement and Warrant Exercise
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About this update from Aton Resources Inc.
[{"type":"text","content":"Aton Announces Private Placement of up to $3 Million, Shares for Debt Settlement and Warrant ExerciseNot for distribution to United States newswire services or for dissemination in the United States VANCOUVER, BC / ACCESSWIRE / September 26, 2023 / Aton Resources Inc. (TSX-V:AAN) (\"Aton\" or the \"Corporation\") is pleased to announce a non-brokered private placement for proceeds of up to $3 million (the \"Private Placement\"). The net proceeds from the Private Placement will be used to fund continued exploration and development activities at Aton's Rodruin and Hamama concessions, located in Egypt, and for general working capital. Aton also announces that OU Moonrider (\"Moonrider\"), a significant shareholder of the Corporation, proposes to settle $6,314,013.87 in outstanding debt through the issuance of common shares (the \"Shares for Debt Transaction\"), and has exercised certain outstanding share purchase warrants of the company which it held. The Private Placement and Shares for Debt Transaction are currently expected to close on or about October 10, 2023, and are subject to receipt of TSX Venture Exchange approval. All currency amounts in this news release are in Canadian dollars.Private Placement Highlights:Non-brokered Private Placement financing of up to 13,636,363 common shares of the Corporation (the \"Shares\") at a price of $0.22 per common share for total proceeds of up to $3,000,000.The Private Placement is open to existing shareholders of the Corporation, who are invited to contact the Corporation if they are interested in participating.Depending on other subscriber interest, Moonrider may subscribe for up to $2,000,000 of the Private Placement.The Private Placement may close in one or more tranches.Shares for Debt:Aton proposes to settle a total of $6,314,013.87 in debt to Moonrider in exchange for 28,700,063 Shares at a price of $0.22 per Share.The Shares for Debt Transaction is a \"related party transaction\" under Multilateral Instrument 61-101, as Moonrider is a control person of the Corporation. The Shares for Debt Transaction was considered by the board of the Corporation excluding Moonrider nominee Tonno Vahk. The Shares for Debt Transaction is exempt from the valuation and majority of the minority shareholder approval requirements of MI 61-101 as (a) the Corporation is in serious financial difficulty, (...