Aton Resources Inc. (TSX-V:AAN) is pleased to announce that it has closed its non-brokered private placement of 43,493,858 units for proceeds of $1,957,223.61. Sandstorm Gold Ltd. acquired 40,000,000 units in the Private Placement for proceeds of $1,800,000.  Additionally, Sandstorm paid Aton $300,000 for a 1% Net Smelter Royalty over the Abu Marawat Concession Area (see news release dated May 9, 2018).

Each Unit consists of one common share in the capital of the Corporation  and one half of one common share purchase warrant. Each Warrant is transferable and entitles the holder to acquire one Common Share at a price of $0.08, until May 28, 2023.  The Common Shares and the Warrants comprising the Units issued in the Private Placement and any Common Shares issued on the exercise of the Warrants are subject to a four-month hold period, which ends on September 29, 2018.

The net proceeds from the Private Placement will be used to fund continued exploration and development activities at Aton’s Abu Marawat concession, located in Egypt.  All currency amounts in Canadian dollars.

In connection with the closing of the Private Placement, the Corporation paid finder’s fees of 6% cash totalling $6,210.00.

Aton’s President & CEO Mark Campbell commented, “We are extremely pleased to have Sandstorm as an investor in Aton and believe that their involvement with Aton speaks to the quality of our team and our assets.  The funds from the Private Placement and Royalty will allow Aton to continue advancing and unlocking the value of the Abu Marawat concession. Another notable development is the study commissioned by Egyptian President El Sisi, by Wood Mackenzie to review the Egyptian Mining Law and regime and by August 2018 to make recommendations and a plan for implementation, to bring reform. In my 23 years of being involved with mining in Egypt, this is the first time that this has occurred.”

Pursuant to National Instrument 62-103 – The Early Warning System and Related Take Over Bid and Insider Reporting Issues, Sandstorm acquired an aggregate of 40,000,000 common shares and 20,000,000-share purchase warrants of Aton. Sandstorm acquired the Aton Shares and Aton Warrants through the Private Placement.

With the acquisition of Aton Shares, Sandstorm now holds approximately 14.94% of the outstanding common shares. Sandstorm is only entitled to exercise, from time to time, such number of Aton Warrants held by it such that, after the applicable exercise, the number of Aton Shares then owned by Sandstorm and its affiliates shall not exceed 19.99% of the then issued and outstanding Aton Shares.

The acquisition of the Aton Shares by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire additional securities of Aton, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.  Sandstorm has agreed not to dispose of any Common Shares or Warrants for a minimum of twelve months from the date of closing.

The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by Sandstorm on Aton’s SEDAR profile at www.sedar.com.
             

About Aton Resources Inc.

Aton Resources Inc. is focused on its 100% owned Abu Marawat Concession located in Egypt’s Arabian-Nubian Shield, approximately 200 km north of Centamin’s Sukari gold mine. Aton has identified a 40 km long gold mineralized trend at Abu Marawat, anchored by the Hamama deposit in the west and the Abu Marawat deposit in the east, containing numerous gold exploration targets, including three historic British mines. Aton has identified several distinct geological trends within Abu Marawat, which display potential for the development of RIRG and orogenic gold mineralization, VMS precious and base metal mineralization, and epithermal-IOCG precious and base metal mineralization. Abu Marawat is over 738km² in size and is located in an area of excellent infrastructure; a four-lane highway, a 220kV power line, and a water pipeline are in close proximity.