Aton Resources began evaluating drilling contractors and civil works contractors in preparation for drilling Hamama and Rodruin prospects.
The company has obtained a loan of C$2,000,000 from Moonrider to be repaid on the earlier of six months from closing or on the closing of any debt or equity financing by Aton in an amount in excess of C$5 million. The loan comes with an interest rate of 12% a year and scheduled to be paid when the loan is due.
The loan proceeds will allow Aton to finalize and sign commitments with the aforementioned contractors and resume drilling ahead of the completion of an equity financing. Additionally, Aton will utilize the proceeds of the loan on capital expenses, finalizing a drilling contract, acquiring critical capital items required, constructing roads, drill pads, a new exploration camp at the Rodruin project, and resuming the drilling program.
“This bridge loan strengthens our capital position to continue with all work required to commence our next drilling program, while we continue our ongoing discussions with potential strategic investors to evaluate other financing alternatives available to the Corporation. It also avoids a significantly dilutive equity financing being completed at this time,” Bill Koutsouras, Aton’s Chairman of the Board, stated.