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Wednesday, 15 May 2019

Canada’s Aton Resources looks to raise CAD 1.5 mn to fund gold exploration in Egypt

Canada’s Aton Resources looks to raise CAD 1.5 mn to fund gold exploration in Egypt: Egypt-focused Canadian miner Aton Resources is raising CAD 1.5 mn in a non-brokered private placement to fund exploration and development in its Abu Marawat concession in Egypt, according to a statement (pdf). The company is issuing 60 mn shares at par value of CAD 0.025 per share. The issuance will close on or around 28 May, the company said. Aton had announced earlier this year it was planning to raise CAD 5 mn, but President and CEO Mark Campbell says the company decided to revise its targets “to reflect demand from Egyptian and Gulf investors and because reform of the mineral exploration terms and conditions in Egypt is moving at a very brisk pace.” The company will instead raise a smaller amount for the time being “to reduce dilution, continue to work and wait for the new investor friendly reforms to be implemented.” Campbell had praised last year the long-awaited amendments to the Mineral Resources Act, saying the scrapping of the production sharing agreement and other changes would have significant effects on investment in exploration and mining.

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