TSX-V-listed Aton Resources has entered into an additional C$4-million bridge loan agreement with OU Moonrider, a significant shareholder of the company.
In connection with the loan, Moonrider will be issued bonus warrants upon each drawdown on the loan, entitling it to acquire common shares in Aton.
Under the terms of the agreement, Moonrider will be issued up to 20-million bonus warrants.
The proceeds of the loan will be used by Aton for working capital, as well as for funding ongoing exploration and upcoming drilling campaigns, and for ongoing mineral resource estimate and technical studies by external consultants in the lead-up to the anticipated transition to the exploitation lease at the Abu Marawat Concession, in Egypt.
With the loan, the total indebtedness of Aton to Moonrider totals $11.74-million.