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Thursday, 9 August 2018

Aton Resources could be out second licensed major gold producer after Centamin

Aton Resources could be the second licensed major gold producer after Centamin: The Egyptian Mineral Resources Authority (EMRA) accepted a declaration of commerciality from Canada’s Aton Resources on its Hamama West gold concession, according to a company statement. The move could open the door for the company to be the second major gold producer in Egypt after Centamin. “This is very exciting news for Aton as it allows us to move forward not only in developing our Hamama West Project, but in progressing our Rodruin exploration target,” said Aton CEO Mark Campbell. “We will now move to begin our next steps in advancing Hamama West and the first pass drilling program at the Rodruin prospect is set to commence shortly,” he said, adding that Aton will be looking for partners with whom to develop the project. The firm had submitted in June a declaration of commerciality on its Hamama Project by Wardell Armstrong International to obtain a 20-year license.

Aton is pleased with the direction gov’t reforms of the mining sector appear to be taking: The statement from Aton was filled with color on what Aton believes is the state of discussion of the government’s reform of the mining sector. Among them are believed to be proposals to scrap the oil-and-gas-style production sharing agreement and move to a tax, rent and royalty model — and eliminate the requirement of a 50:50 JV with EMRA completely. Aton also expects the government to allow exploration companies to acquire exploration ground without first acquiring exploration licenses. The changes are yet to pass the House of Representatives. “With all the signs are pointing towards the long awaited reform of the Egyptian mining sector and the speed that the Government appear to be moving at to implement these changes, leads us to believe that major positive changes for exploration companies, mining companies and the Egyptian Minerals industry overall is at hand,” said Campbell.

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