Business
Aton Resources announces private placement of up to C$1.5 million
Not for distribution to United States newswire services or for dissemination in the United States VANCOUVER, British Columbia, May 14, 2019 (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 14, 2019 (GLOBE NEWSWIRE) -- Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Company\") today announces a non-brokered private placement of up to C$1.5 million (the “Private Placement”) through the issuance of up to 60,000,000 common shares (each a “Share”) of the Company at a price of $0.025 per Share. The Company expects to close the Private Placement on or around May 28, 2019, subject to the TSX Venture Exchange’s (the “TSXV”) approval of a discretionary waiver of the $0.05 minimum pricing requirement. Use of Private Placement Proceeds 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 and for general corporate purposes. Existing Shareholder Participation The Private Placement will be open to all existing shareholders who held the Company’s common shares on May 13, 2019 (the “Record Date”). Each purchaser will also be required to complete a subscription agreement which confirms, among other things, the availability of an exemption from the prospectus requirements of applicable securities laws in respect of the sale of Shares to such purchaser. In the event of over-subscription, the Company will determine allocations between shareholders at its sole discretion. “We have decided to revise our financing for two reasons: (1) to reflect demand from Egyptian and Gulf investors and (2) because reform of the mineral exploration terms and conditions in Egypt is moving at a very brisk pace,” said Mark Campbell, President and CEO. “We will continue our exploration program, but our goal has been since the announcement last year of mining law reform and the repealing of the oil & gas PSA and elimination of the 50:50 JV with the Government, to look for partners to work with us to develop our various exploration and development projects. So we will raise a smaller amount now to reduce dilution, continue to work and wait for the new investor friendly reforms to be implemented.” Additional Terms All shares issued in the Private Placement will be subject to a four month hold period from the date of issuance, in accordance with applicable securities laws. Completion of this Private Placement ...