Shares outstanding: 36,615,615
TORONTO, Nov. 12 /CNW/ - Augen Capital Corp. ("Augen" or the "Company") (TSX-V: AUG) today announced that it has agreed to provide a non-revolving secured loan facility (the "Facility") of a maximum of $1,100,000 to Augen Gold Corp. ("Augen Gold" or the "Borrower") at an interest rate of 12% per annum for between 6 and 12 months from the date of the first advance, depending upon the amount drawn under the Facility. In exchange for providing the Facility, the Company will take security over all the real and personal property of the Borrower including all the staked and patented mining claims held by the Borrower in the southern Swayze Greenstone Belt, Porcupine Mining Division, District of Sudbury, Ontario. The Company is also entitled to appoint a minimum of one and a maximum of two directors to the board of Augen Gold, depending upon the amount drawn under the Facility.
The funds will be advanced by the Company primarily to pay for expenditures made by Augen Gold that qualify as Canadian Exploration Expense ("CEE") pursuant to the Income Tax Act (Canada). The Facility will assist Augen Gold in advancing its current drilling program on its southern Swayze Greenstone Belt property in Ontario. The Company owns approximately 32% of the outstanding common shares of Augen Gold. J. David Mason, is a director and officer of the Company and of the Borrower and Manish Z. Kshatriya is the Chief Financial Officer of the Company and the Borrower.
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.
For more information on Augen Capital, visit our website at www.augencc.com
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 Gensource Capital Corporation
For further information: For further information: J. David Mason, President & Chief Executive Officer, Tel: (416) 479-3300, email@example.com