Aton Announces US$30M Credit Facility with OU Moonrider

Aton Resources Inc. has secured a US$30 million unsecured credit facility from OU Moonrider, a controlling shareholder holding approximately 66.4% of outstanding shares. The facility carries a 12% annual interest rate on drawn amounts, with a default interest rate of 20% on unpaid principal or interest. Maturity is set for September 1, 2028.

The loan is unsecured, non-convertible, and contains no equity conversion or warrant components. Proceeds are designated for further exploration and development at the Hamama project and general administrative expenses. The transaction was approved by the Board of Directors, with the Moonrider nominee abstaining, and qualifies for exemptions under Multilateral Instrument 61-101 as a related-party transaction.

Aton Resources Inc. (AAN) secured a $30 million credit facility to address the severe liquidity constraints detailed in its Q1 2026 MD&A, which reported a working capital deficiency of $25.7 million and negative shareholders' equity of $25.2 million. The financing provides sufficient runway to cover the deficiency and fund near-term exploration and development, effectively neutralizing the explicit going-concern warning. Unlike typical distressed financings, the deal avoids equity dilution or warrant issuance, thereby preserving existing shareholder equity.

However, the 12% interest rate on drawn amounts will increase finance costs, compounding the existing $797K in quarterly interest expenses from bridge loans. The reliance on a controlling shareholder for the $30 million facility signals limited access to public markets or institutional debt at this stage, consistent with the company's pre-revenue, exploration-stage status. This financing follows the July 2026 $4 million private placement and aligns with management's stated need for external capital to advance the Hamama West Pre-Feasibility Study and Semna exploration.

Aton Resources Inc. is a Canadian-listed exploration and development company focused on the Abu Marawat Concession in Egypt's Arabian-Nubian Shield. It holds the distinction of being the first international firm to receive a gold mining license in Egypt since 2005. The concession includes a 57.66 km² exploitation lease, issued in January 2024 for 20 years, covering the Hamama West and Rodruin deposits, plus 255 km² of retained exploration areas.

The company’s flagship project is Hamama West, an open-pit, modular CIL operation targeting production start-up in 2027. Additional projects include Abu Marawat, a polymetallic gold-silver-copper-zinc deposit, Rodruin, and the fast-tracked Semna gold project. Infrastructure advantages include proximity to a four-lane highway, a 220-kV power line, a water pipeline, and international airports at Hurghada and Luxor.