TSX-V-listed Aton Resources has entered into a bridge loan facility with Ou Moonrider, a significant shareholder.

Pursuant to the facility, the corporation may borrow up to C$1-million from Ou Moonrider.

The facility will bear interest at a rate of 12% a year, which will be payable when the facility is due.

In connection with the facility, Ou Moonrider will be issued bonus warrants upon each drawdown on the facility entitling it to acquire common shares of the corporation. The number of bonus warrants issuable upon each drawdown shall be determined by dividing the drawdown amount by the market price of the corporation’s common shares on the date of drawdown, Aton confirmed in a statement on March 17.

The exercise price of the bonus warrants shall be the market price on the date of issuance, and bonus warrants will be exercisable for a period of 12 months from each drawdown.

Full drawdown of the facility of C$1-million has been completed entitling Ou Moonrider to more than 4.2-million bonus warrants with an exercise price of $0.23 per share and an expiration date of March 16, 2022.

The bonus warrants are subject to the approval of the TSX Venture Exchange.

The proceeds from the facility will allow Aton to advance the critical work required to prepare for its next drilling programme while it works on completing a private placement financing.

The proceeds of the facility will be used by the corporation for ongoing working capital expenses and to complete civil works in preparation to commence drilling, such as constructing roads, drill pads and constructing a new exploration camp at the company's Rodruin project, in Egypt.

Additionally, Aton CEO, president and director Mark Campbell will be retiring from all positions held with the company at the end of March, though he will continue to be available to provide ongoing input and support to Aton in the future, as well as assisting with a smooth transition to new management.

Aton chairperson Bill Koutsouras will assume the role of interim CEO until a permanent successor is recruited by the board of directors. 

Aton’s recently appointed country manager in Egypt, Dr Sherif Sousa, will, meanwhile, assume the management of Aton's day-to-day activities in Egypt.