Gold and base metals miner Aton Resources has entered into an additional bridge loan with shareholder Moonrider and will use the proceeds for ongoing working capital expenses and resuming the drilling programme at Rodruin – an advanced exploration prospect in the south of the Abu Marawat concession, in Egypt.
Aton borrowed $500 000 from Moonrider, which is repayable on the earlier of six months from closing, on the occurrence of various standard events of default, or on the closing of any debt or equity financing by the corporation in an amount in excess of $5-million.
The loan will bear interest at a rate of 12% a year, payable when the loan is due.
Moonrider will be issued 2.94-million bonus warrants with an exercise price of $0.17 a share and an expiration date of January 4, 2023. The bonus warrants are subject to the approval of the TSX Venture Exchange, Aton says.
“I would like to thank Moonrider for their continued support of Aton. This bridge loan is used to finance the ongoing drilling programme at Rodruin, while we continue our ongoing discussions with potential strategic investors,” says Aton interim CEO Tonno Vahk.