VANCOUVER, British Columbia, Sept. 22, 2022 (GLOBE NEWSWIRE) — Aton Resources Inc. (AAN: TSX-V) (“Aton” or the “Corporation“) announces that it has entered into an additional bridge loan (the “Loan“) with OU Moonrider (“Moonrider“), a significant shareholder of the Corporation.
The Corporation has borrowed C$2,000,000 from Moonrider, which Loan is repayable on the earlier of 12 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 C$5.0 million. The Loan will bear interest at a rate of 12% per annum, payable when the Loan is due.
In connection with the Loan, Moonrider will be issued bonus warrants upon each drawdown on the Loan entitling it to acquire common shares of the Corporation. The number of bonus warrants issuable upon each drawdown shall be determined by dividing the drawdown amount by the share price of the Corporation’s common shares on the date of the drawdown. The bonus warrants will be exercisable for a period of 12 months from each drawdown.
The entire Loan has been drawn down, entitling Moonrider to 9,090,909 bonus warrants with an exercise price of $0.22 per share and an expiration date of September 21, 2023.
The Loan and the issuance of the bonus warrants is subject to the approval of the TSX Venture Exchange.
The proceeds of the Loan will be used by the Corporation for ongoing working capital expenses and continuing its drilling program at Rodruin.