Aton Resources (AAN.V) after trade Tuesday said it has entered into an agreement with shareholder OU Moonrider to borrow up to $30 million.
The facility can be drawn in one or more advances and matures on Sept. 1, 2028, with an interest rate of 12% per year. Any unpaid amounts after maturity will carry 20% annual interest. The loan is unsecured and cannot be converted into equity securities of Aton. No bonus shares or warrants will be issued as part of the facility, the company added.
Moonrider is Aton's controlling shareholder, owning about 66.4% of the company, according to the statement.
"The Aton board concluded that the facility is on reasonable commercial terms that are not less advantageous to the company than if the facility were obtained from a person dealing at arm's length with the company," the company said.
The company added that it plans to use the funds for further exploration and development at its Hamama project, as well as general and administrative expenses.