TSX-V-listed Aton Resources says it has received subscriptions for the purchase of 17.92-million units at a price of $0.40 a unit, raising gross proceeds of $7.17-million.

Each unit consists of one common share and half of a share purchase warrant. Each warrant will entitle the holder to buy an additional common share at $0.80 for a period of three years from closing.

The net proceeds of the offering will be used to fund further exploration activities at Aton's 100%-owned Abu Marawat concession, in Egypt, as well as for working capital requirements.

Medaf Mining and Manufacturing Company subscribed for 17.5-million of the units for a total investment of $7-million.

“A new chapter in Aton’s story is unfolding. I am very pleased to welcome Medaf as a new strategic investor. Medaf is a Kuwaiti-Egyptian business partnership in Egypt, and is one of the fastest growing holding groups in the region.

"For over 15 years, Medaf has been present in the Egyptian mining industry, where they are involved in the mining of rock phosphate, gold, iron and chromium ore and feldspar. Medaf’s financial capacity will give Aton more flexibility in determining how it goes about future financings,” says Aton president and CEO Mark Campbell.

On closing, Medaf will have a 34.17% shareholding in Aton on a nondiluted basis and a 43.78% shareholding on a partially diluted basis.

It will have the right to appoint up to three nominees to the Aton board, subject to its shareholding in Aton being greater than 30%.

Should its shareholding in Aton be above 20%, but less than 30%, it will have the right to appoint two nominees to the Aton board.

Should its shareholding in Aton be above 10%, but less than 20%, it will have the right to appoint one nominee to the Aton board.

Outlining the company's plans for the near term, Campbell says Aton will soon start the second phase of exploration drilling at the Rodruin deposit, which is also located in Egypt and which returned excellent results from the first programme.

"We also plan to drill at Abu Gaharish, which we believe has similar geology to the world-class Sukari deposit 200 km to the south, as well as some of our other highly promising regional exploration targets. Timing will be dependent on rig availability and if we can bring one in and begin before Christmas we will, but I think January 2021 as a start date is realistically more likely. The goal here is to get to an mineral resource estimate at Rodruin as fast as we can.

“Secondly, we will continue work at Hamama West, where our plan is to establish a starter openpit mine on the uppermost oxide portion of the deposit and a heap leach processing facility. This we envisage will be the first phase of the overall development of the entire Hamama project area. This will include additional resource delineation and definition drilling, further metallurgical, geotechnical and hydrological studies, and water well drilling leading to the establishment of a process water supply borefield," he points out.