Shares outstanding: 49,916,560
TORONTO, March 1 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) reports that it has amended the amount of qualifying Canadian Exploration Expenses ("CEE") which were previously renounced, effective December 31, 2008, to purchasers of flow-through shares of the Company.
Pursuant to the terms of certain financing and subscription arrangements with purchasers of flow-through shares of the Company on the initial public offering of securities of the Company in mid-2008, the Company agreed to incur by December 31, 2009 the amount of $3,358,520 of qualifying Canadian Exploration Expenses (the "Qualified Expenditures") for which renunciations were made to the purchasers effective December 31, 2008. Of this amount, approximately $2,000,000 of Qualified Expenditures was actually expended by December 31, 2009. As a result, the Company has amended its filings with the Canada Revenue Agency and purchasers of the flow-through shares to take into consideration the reduction of approximately $1.4M of Qualified Expenditures that are eligible to be renounced to the purchasers. The Company is currently working with its professional advisors to determine a reasonable estimate of the extent of the Company's liability as a result of its inability to incur the full amount of Qualified Expenditures by December 31, 2009. The liability will depend upon a number of factors including the personal tax situation of the purchasers of the Company's flow-through shares.
About Augen Gold
Augen Gold is a gold exploration company with 24,581 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 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) 479-3300, Toll-free: 1-888-442-8436