Augen Capital Calls Special Meeting of Shareholders of Augen Gold

    Shares outstanding: 36,615,615

    TORONTO, Jan. 14 /CNW/ - Augen Capital Corp. (Augen Capital) (TSX-V: AUG)
announced today it will convene a Special Meeting of Shareholders of Augen
Gold Corp. (Augen Gold) (TSX-V: AUJ), that will take place on Tuesday, March
10, 2009 at 10:00 a.m. EST at the offices of law firm Stikeman Elliot LLP.
    Augen Capital requisitioned the Directors of Augen Gold on December 18,
2008 to call a Special Meeting of its shareholders. However, the Board of
Augen Gold failed to do so in the time permitted to call a meeting and did not
announce the creation of a special committee to consider the requisition until
January 9, 2009. As a result of the Board's failure to act in accordance with
security regulations, Augen Capital is acting on its right to convene the
Special Meeting of Shareholders of Augen Gold.
    Augen Capital will issue a proxy circular shortly and in time to allow
Augen Gold shareholders to consider the business to be brought before the
    At the Special Meeting, shareholders of Augen Gold will be asked to vote
on the following:

    -   A debt-to-share conversion whereby Augen Gold would issue to Augen
        Capital 8,974,808 common shares in Augen Gold at an issue price of
        $0.125 per share, which would repay the $1.1 million outstanding debt
        owed to Augen Capital on terms highly favourable to Augen Gold
        shareholders and conserve Augen Gold's cash position;

    -   The removal of the current Directors of Augen Gold, to be replaced by
        the following new slate of Directors:

        Tony Busseri - A Director of Augen Capital, Mr. Busseri has held a
        variety of senior executive positions and has served on a number of
        Boards of Directors. He is currently Executive Vice President of
        Hanfeng Evergreen Inc (TSX: HF) the largest producer of slow and
        controlled release fertilizers in China. Previously, Mr. Busseri
        served as the President and Chief Executive Officer of EnGlobe Corp.
        (TSX: EG) and is the co-founder of Growth Equity Partners, an
        advisory firm specializing in transformational business initiatives
        support for small and medium sized public and private companies. He
        also co-founded Waste Services Inc. (NASDAQ:  WSII) and was its
        Chairman of the Board of Directors and Chief Executive Officer from
        June 1997 to August 2000. Prior to that, Mr. Busseri served as the
        President and CEO of Cole Carriers Inc. and held various corporate
        development positions with Philip Services Corp. and with Laidlaw
        Waste Systems. Mr. Busseri is a Certified Management Accountant.

        A. Timothy Peterson - Mr. Peterson has over 35 years of executive
        experience assisting public and private companies reach new levels of
        success. A Member of the Parliament of Ontario from 2003 to 2007, he
        is currently the Chairman of the Board and Chief Financial Officer of
        Nordex Explosives Ltd (TSX-V: NXX), a company he helped stabilize
        following a hostile public takeover. Prior to serving as an MPP, Mr.
        Peterson served on the Boards of Directors of: Bag to Earth, a
        manufacturer of compostable paper bags; Process Capital Ltd., a
        public company that has a patented process for turning waste oil into
        diesel fuel; Northern Crown Capital; Tracom Ltd., and a number of
        other private businesses.

        James Sbrolla - Mr. Sbrolla is a veteran of both the financial
        services and environmental industries. Currently, he is Chairman of
        Environmental Business Consultants and the Manager of a private
        equity fund. Mr. Sbrolla also serves on the Boards of three private
        companies: WE Communications; Actual Media; and, Green Students
        Fundraising. A widely published journalist in the business media, he
        has written on a variety of topics including a multi-national study
        on finance, the environment and sustainable development. Previously,
        Mr. Sbrolla was a Partner and Investment Advisor with Canaccord

    -   Any other business as may properly come before the Special Meeting,
        including matters necessary to implement the first two items.

    "It is unfortunate that the current Board of Augen Gold has failed in
their duty to respond in a timely manner to the requisition from its largest
and founding shareholder, to convene a Special Meeting of Shareholders of
Augen Gold," said J. David Mason, Chairman and CEO of Augen Capital. "This
failure continues a pattern of behaviour in which the Board has failed to
respond to critical overtures from Augen Capital that would help Augen Gold
preserve cash. We believe it is clear that the current Board is not acting in
the best interests of Augen Gold shareholders."
    On January 6, 2009, Augen Capital wrote to Augen Gold director Joe Leeder
demanding his immediate resignation since it was apparent that Mr. Leeder was
not acting for Augen Gold but in the interests of his employer, Envoy Capital
Group Inc., a shareholder of Augen Gold. Mr. Leeder has yet to respond to the
demand for his resignation.
    Augen Capital previously announced that it had proposed to negotiate a
new Management Services Agreement that would have been at a reduced net cost
to Augen Gold of $8,500 per month, to assist in the preservation of cash at
Augen Gold. In addition, Augen Capital has proposed the repayment of the loan
from Augen Capital through conversion into shares of Augen Gold.

    Special Meeting of Augen Gold Shareholders

    Date:           March 10, 2009

    Time:           10:00 a.m. EST

    Location:       Stikeman Elliot LLP, 5300 Commerce Court West,
                    199 Bay Street, Toronto

    About Augen Capital

    Augen Capital Corp. ("Augen") (TSX-V: AUG) is a Toronto-based public
merchant bank specializing in the financing of and investment in emerging
resource companies. Augen manages a merchant banking hard dollar portfolio of
emerging resource stocks including private companies and is an industry
performance leader in tax-advantaged flow-through investments in Canada's
resource sector having raised over $80 million in flow-through limited
partnership assets since inception. Augen holds over one hundred gold, base
metals and uranium exploration and development public and private companies
with direct holdings in its merchant banking portfolio and consulting assets
in flow-through limited partnerships.

    The TSX Venture has not reviewed and does not accept responsibility for
    the adequacy or accuracy of this release.

    %SEDAR: 00008335E

For further information:

For further information: J. David Mason, Chairman, President and Chief
Executive Officer, Tel: (416) 479-3300, Toll-free: (888) 442-8436,; For more information on Augen Capital, visit
our website at; The Company's public documents may be accessed

Organization Profile

Gensource Capital Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890