VANCOUVER, British Columbia, Feb. 05, 2021 (GLOBE NEWSWIRE) -- Aton Resources Inc. (AAN: TSX-V) ("Aton" or the "Corporation") announces that it has entered into a bridge loan facility (the " Facility ") with Ou Moonrider (" Moonrider "), a significant shareholder of the Corporation. Pursuant to the Facility, the Corporation may borrow up to C$400,000 from Moonrider, which Facility is repayable on the earlier of six months from closing, on the occurrence of various standard events of default, or on the closing of any debt or equity financing by the Corporation in an amount in excess of C$1.5 million. The Facility will bear interest at a rate of 12% per annum, payable when the Facility is due.
In connection with the Facility, Moonrider will be issued bonus warrants upon each drawdown on the Facility entitling it to acquire common shares of the Corporation. The number of bonus warrants issuable upon each drawdown shall be determined by dividing the drawdown amount by the market price of the Corporation’s common shares on the date of drawdown. The exercise price of the bonus warrants shall be the market price on the date of issuance. The bonus warrants will be exercisable for a period of 12 months from each drawdown.
Full drawdown of the Facility of C$400,000 has been completed entitling Moonrider to 1,600,000 bonus warrants with an exercise price of $0.25 per share and an expiration date of February 5, 2022.
The proceeds of the Facility will be used by the Corporation to fund working capital expenses, while the Company awaits all approvals to complete the previously announced private placement financing (see news release dated October 22, 2020).
The Facility is subject to the approval of the TSX Venture Exchange.