Shares outstanding: 76,655,940
TORONTO, Aug. 17 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) announces a settlement of a portion of a flow-through indemnity obligation for a total value of $442,740.86 subject to regulatory approval consisting of the issuance of 2,604,358 Units at a deemed value of $0.17 per Unit.
Each Unit will consist of one common share of the Company and one common share purchase warrant. Each whole Warrant will entitle the holder to purchase one common share at a price of $0.25 for a period of 18 months following the closing date. All securities issued in conjunction with the settlement will be subject to a hold period, which expires four months after closing.
The Company was committed to spend $3,358,520, by December 31, 2009, on Canadian Exploration Expenditures ("CEE") representing the entire amount raised through its June 2008 flow-through financing, included as part of the initial public offering. As at December 31, 2009, the Company had spent $1,961,846 of the $3,358,520 CEE commitment, which resulted in a reduction of $1,396,674 to the previously renounced CEE of $3,358,520 and this reduction was allocated proportionately among all purchasers of flow-through shares on the initial public offering. The Company, in accordance with the terms of certain financing and subscription arrangements with purchasers of flow-through shares offered during the Company's initial public offering, is required to indemnify flow-through shareholders for an amount equal to the amount of any tax payable by the shareholder as a result of the reduction of previously renounced CEE.
Pursuant to the settlements noted above, the Company settled with arm's length subscribers purchasing more than 56% of the $3,358,520 flow-through financing on the initial public offering. The Company is in discussions with a number of the remaining investors and intends to attempt to satisfy the remaining indemnity obligation as soon as reasonably possible.
About Augen Gold
Augen Gold is a gold exploration company with 23,877 hectares of staked and patented mining claims in the Southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The claims cover a 45 kilometre long section of the Ridout Deformation Zone, believed to be the western extension of the Kirkland Lake/Larder Lake Break. The geological setting is comparable to the major gold camps of Timmins and Kirkland Lake, and the claims contain numerous gold showings that have received very little historical exploration. Augen Gold is the first company to have assembled such a coherent ground position. Augen Gold has performed a detailed airborne geophysical survey over the whole area, and its sampling program has confirmed the historically reported gold values. The correlation of many gold showings with geophysical features indicates excellent potential for the discovery of additional deposits. The Company's objectives are to aggressively explore the gold showings that correlate with geophysical anomalies, continue resource definition at the Jerome Mine, and to expand its property portfolio with highly prospective mineral assets.
For more information on Augen Gold, visit our website at www.augengold.ca
The Company's public documents may be accessed at www.sedar.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
SOURCE AUGEN GOLD CORP.
For further information: For further information: J. David Mason, Chief Executive Officer and Director, Augen Gold Corp., Tel: 416-915-4231, Email: email@example.com