TORONTO, Feb. 8 /CNW/ - Further to the previously issued news release on February 1, 2010, Augen Capital Corp. (TSXV: AUG), and its wholly owned subsidiary Aumerco Ltd., (collectively "Augen" or the "Concerned Shareholder") announce that they have increased their holdings in Staccato Gold Resources Ltd. ("Staccato" or the "Company") (TSXV: CAT) by 979,500 common shares through the facilities of the Toronto Venture Exchange ("TSXV") for investment purposes at an average price, including commission, of $0.0957 per share. As a result, Augen's total common share holdings in Staccato amount to 7,358,000 or approximately 7.4 percent of the total shares issued and outstanding.
As disclosed in Augen's January 22, 2010 news release, Donald Decker, a professional geologist and a former member of the board of directors of Staccato, and Century Gold LLC, a holding company controlled by Donald Decker, (collectively the "Decker Group") entered into an agreement with the Concerned Shareholder to vote the Decker Group's shares in support of removing and replacing the current board of directors of Staccato with those nominees to be proposed by the Concerned Shareholder in connection with a meeting of Staccato shareholders requisitioned by the Concerned Shareholder. The Decker Group acquired an additional 500,000 common shares of Staccato through the facilities of the TSXV at an average price, including commission, of USD$0.1104 per share.
The Concerned Shareholder and the Decker Group in aggregate now own 13,817,334 common shares or approximately 13.8 percent of the total issued and outstanding shares of Staccato.
The Concerned Shareholder and the Decker Group believe the common shares of Staccato are undervalued. The Concerned Shareholder and/or the Decker Group may acquire ownership or control over additional Staccato shares depending on market conditions and other strategic considerations.
This press release is not, and is not to be construed to be, a solicitation of proxies. Prior to and in connection with the Meeting, Augen intends to file and distribute to all Staccato shareholders (as well as to the Company, its directors and its auditors) an information circular that contains detailed information relating to the Concerned Shareholder's nominees, the solicitation of proxies, the Meeting, and the Concerned Shareholder's plan to increase shareholder value. All Staccato's shareholders should read the Concerned Shareholder's information circular before making any voting decision.
Forward Looking Statements
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Staccato. These statements are based on suppositions and uncertainties as well as on the best possible evaluation of future events. As a result, readers are advised that actual results may differ from expected results.
Augen Capital Corp. is a Toronto-based public merchant bank specializing in the financing of and investment in emerging resource companies. Augen manages a merchant banking portfolio of emerging resource stocks.
For more information on Augen, visit our website at www.augencc.com. The Concerned Shareholder'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. The issuance of this news release is not an admission that an entity named in this news release owns or controls any described securities or is a joint actor with another named entity.
This news release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this news release including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), 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 the minerals the investee companies expect to produce; 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 investee companies. Additional risks and uncertainties can be found in our Management's Discussion and Analysis and in filings with the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this news release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Gensource Capital Corporation
For further information: For further information: Spinnaker Capital Markets Inc., Ali Mahdavi, (416) 962-3300 ext. 225, email@example.com