Business
Aton Resources Announces $2.1 Million Financing Package With Sandstorm Gold Ltd and Concurrent Private Placement for Proceeds Up to $3.0 Million
Not for distribution to United States newswire services or for dissemination in the United States VANCOUVER, British Columbia, May 09, 2018 (GLOBE NEWSWIRE) --
About this update from Aton Resources Inc.
[{"type":"text","content":" 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 h...