Aton Resources welcomes investor

Medaf Mining and Manufacturing will be purchasing 17,92 million Aton Resources units for $0.40 per unit.

Aton Resources has announced that it is receiving subscriptions for the purchase of 17,92 million units at a price of $0.40 a unit from Medaf Mining and Manufacturing Company, raising gross proceeds of $7,17 million.

TSX-V-listed Medaf is a Kuwaiti-Egyptian business partnership in Egypt and is one of the fastest growing holding groups in the region.

Medaf has been present in the Egyptian mining industry for over 15 years, where they are involved in the mining of rock phosphate, gold, iron and chromium ore and feldspar. Each unit consists of one common share and half of a share purchase warrant. Each warrant will entitle the holder to buy an additional common share at $0.80 for a period of three years from closing.

The net proceeds of the offering will be used to fund further exploration activities at Aton’s 100 percent-owned Abu Marawat concession in Egypt, as well as for working capital requirements.

Aton president and CEO Mark Campbell says: 

“A new chapter in Aton’s story is unfolding. I am very pleased to welcome Medaf as a new strategic investor.” 

Outlining the company’s plans for the near term, Mark says Medaf’s financial capacity will give Aton more flexibility in determining how it goes about future financings.