TSX-V-listed gold explorer and developer Aton Resources has entered into an additional bridge loan of C$500 000 with OU Moonrider – a significant shareholder of the company.
The proceeds of the loan will be used by Aton for ongoing working capital expenses and continuing the drilling programme at its Rodruin project.
In return for providing the loan, Moonrider will be issued 2.17-million bonus warrants (subject to the approval of the TSX-V) with an exercise price of C$0.23 apiece, expiring January 26, 2023.
The loan 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 Aton in an amount in excess of C$5-million.
It will also bear interest at a rate of 12% a year, payable when the loan is due.
Aton is focused on its 100%-owned Abu Marawat concession in Egypt’s Arabian-Nubian Shield, about 200 km north of Centamin’s significant Sukari gold mine.