AMN - EGYPT: Aton exploration licence extended

Aton Resources confirms the extension of its exploration licence at the 100%-owned Abu Marawat Concession in the Eastern Desert of Egypt, until March 2020. The company has also relinquished 20% of the land area of the concession.

Aton's president and CEO Mark Campbell said: "We have now agreed a further land relinquishment at Abu Marawat with the Ministry of Petroleum and Mineral Resources (MOP) and the Egyptian Mineral Resources Authority (EMRA).

At the same time, we have also been formally granted an extension on the exploration licence until March 2020, further extended from the previously advised January 2020 date.

"This is very positive news for Aton, as not only were we able to reduce our area by 20% to nearly 600sqkm, allowing us to retain all of our exploration targets as well as other prospective areas within our licence, but it also gives us an even longer extension period for us to continue our work and to await the reforms to Egyptian exploration and mining that are coming. This is an important development for Aton."

The relinquishment will allow the company to focus its ongoing regional exploration activities at Abu Marawat on the main existing prospects and target areas, including new areas of interest identified in the northeast area of the concession, as well as progressing the advanced Rodruin project, which remains the company's top priority.

Aton last week decided to withdraw its $5 million financing from the market. The company said market conditions for junior mining companies remained difficult despite the quality of its' projects.

Despite the significant positive results of its 2018 drilling campaign and the positive changes in the Egyptian fiscal and regulatory regime which are being advanced by the Government of Egypt, the company will now focus on its financing opportunities including sources of funds in its operating region.

The company is in discussions with several parties about revised offering terms and financing structures.

Abu Marawat Concession is in Egypt’s Arabian-Nubian Shield, about 200km north of Centamin’s Sukari gold mine. Aton has identified a 40km-long gold mineralised 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.

www.atonresources.com