AMN - EGYPT: Aton granted extension at Abu Marawat

Aton Resources requested and has been granted a three-year extension to the final exploration period of its current exploration licence at its Abu Marawat Concession in Egypt. This allows Aton to carry on with exploration work on the concession whilst awaiting the final regulations and amendments to Egypt's mining laws.

The extension should allow ample time for Aton to migrate to the new regime from its existing concession agreement and benefit from the improved terms. The mining law changes are designed to make investment and development in the mining sector much more attractive to investors. 

Following Aton's announcement on February 12, 2020, of the approval of its application for an exploitation licence at Hamama and its retained exploration areas within the Abu Marawat Concession, the company had numerous discussions with representatives of the Egyptian Mineral Resource Authority (EMRA) and Ministry of Petroleum and mutually agreed it was in the best interests of the company to proceed with a three-year extension for a number of reasons, including:

• Avoiding the expense and time commitment of immediately forming a joint venture company with EMRA to advance the exploitation of the Hamama deposit, in accordance with the company's existing concession agreement;
• Allowing the company additional time to continue its exploration program, while at the same time retaining its right to declare a commercial discovery during the three-year extension period, should it choose to;
• The ability of the company to retain more exploration ground given the relinquishment required under the three-year extension is reduced; and
• Avoiding the expense of paying rental fees on retained areas, given no rental fees will now be payable during the three-year exploration period.

Subsequently, the company confirmed that it has partially relinquished a further 25% of the land area of the Abu Marawat Concession, reducing the area of the concession to 447.7sqkm. This relinquishment was accepted and approved by EMRA on June 3, 2020.

The western Hamama block remains unchanged, while the eastern block has been reduced to 423.2sqkm in size. The company does not consider the ground relinquished to be prospective for the discovery of economic gold mineralisation.

Aton's president and CEO Mark Campbell said: "We are pleased to confirm the relinquishment of a further 25% of the concession, comprising extraneous and unprospective 'moose pasture', and which will have no material effect on Aton.

"On the contrary, this relinquishment is in exchange for an extension of a further three years on the exploration licence at Abu Marawat, and we are delighted that this confirmed security of tenure will now allow us to actively pursue our planned programs.

"I have no doubt that investors are frustrated by what appears to be on the surface a lack of activity, but much of this has been the result of the COVID-19 pandemic hitting everyone.

"However, this impression could not be further from the truth, as we have developed an aggressive 18-month exploration program for Rodruin and our other prospective regional targets, such as Abu Gaharish, as well as a plan for further work at our Hamama West development project.

"It also allows us, with the new global interest in the exploration potential of the Eastern Desert of Egypt, to open the door to discussions with strategic investors who are seeking to enter the Egyptian mineral exploration and mining sector.

"We have the most advanced exploration concession and gold projects in the country and the only ones operated to international standards.

"This also gives us the opportunity to work on the legal and technical processes of migrating to the new terms and conditions outlined in the new Executive Regulations of the Mineral Resources Law.

"So, I am convinced that the next three years will be a very exciting time for Aton and its shareholders."

www.atonresources.com