TSX-V-listed Aton Resources has announced that it is initiating a nonbrokered private placement to generate potential proceeds of up to C$3-million.
The net revenue obtained from the private placement will be allocated for the continuation of exploration and development activities within Aton's Rodruin and Hamama concessions in Egypt, as well as for general operational capital purposes.
A notable shareholder of the corporation, OU Moonrider, has proposed to settle an outstanding debt of more than C$6.3-million through the issuance of common shares.
Additionally, Moonrider has exercised certain outstanding share purchase warrants owned in the company.
Both the private placement and shares for debt transaction are expected to be finalised by about October 10, subject to the receipt of approval from the TSX-V.
The nonbrokered private placement will provide an opportunity to acquire up to about 13.6-million common Aton shares at a rate of C$0.22 a common share, yielding total potential proceeds of up to C$3-million.
The private placement is accessible to existing Aton shareholders.
Depending on interest from other subscribers, Moonrider may potentially subscribe for up to C$2-million of the private placement.
The private placement may be executed in one or more segments.