AUGEN GOLD CORP. ANNOUNCES SECOND CLOSING
September 27 2010 - 8:29AM
PR Newswire (Canada)
TORONTO, Sept. 27 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ Shares
outstanding: 83,701,205 TORONTO, Sept. 27 /CNW/ - Further to its
press releases dated August 16, 2010 and September 2, 2010, Augen
Gold Corp. ("Augen Gold" or the "Company") (TSX-V: GLD), is
pleased to announce a proposed second closing of its previously
announced private placement offering (the "Offering"). On August
13, 2010, Augen Gold announced a private placement of Flow-Through
Units and Units for gross proceeds of up to $2,000,000. On
September 2, 2010 the Company announced that it had completed the
first closing of the Offering, raising gross proceeds of $766,100.
Due to increased investor demand, Augen Gold has increased the
amount of financing on the proposed second closing from $1,233,900
to up to $3,400,000 for aggregate gross proceeds of up to
$4,166,100 pursuant to the first and second closings of the
Offering. Industrial Alliance Securities and Secutor Capital
Management Corporation will again act as co-lead Agents
(collectively, the "Agents") on the second closing of the Offering.
The second closing of the Offering is subject to regulatory
approval. The second closing of the Offering will consist of the
sale of up to 12,522,727 Flow-Through Units at $0.22 per
Flow-Through Unit for gross proceeds of up to $2,755,000, and the
sale of up to 3,794,117 Units at $0.17 per Unit for gross proceeds
of up to $645,000. Each Flow-Through Unit will consist of one
common share, issued on a flow-through basis, and one common share
purchase warrant of the Company (a "Warrant"). Each Unit will
consist of one common share of the Company and one Warrant. Each
Warrant entitles the holder to purchase one common share at a price
of $0.25 for a period of 18 months following the closing date. The
Company has granted the Agents an over-allotment option of 15%,
exercisable at the issue price for a period of 30 days following
closing. The securities issued pursuant to the second closing of
the Offering will subject to trade restrictions expiring four
months after closing, pursuant to applicable securities laws.
Compensation to the Agents will consist of a cash
commission of 8% of the gross proceeds raised and the number
of agent's warrants representing 8% of the number of Flow-Though
Units and Units sold pursuant to the second closing of the
Offering. Each such agent's warrant will entitle the holder to
acquire one common share for $0.25 for a period of 18 months from
the date of issuance. Net proceeds of the financing will be used to
fund exploration and for working capital purposes. The aggregate
proceeds raised from the issuance of the flow-through common shares
and units will be used by the company to incur exploration
expenditures on its properties in Ontario, which will constitute
Canadian exploration expenses and flow-through mining expenditures
(as defined in the Income Tax Act (Canada)), which will be
renounced to purchasers for the 2010 taxation year. About Augen
Gold Augen Gold is a gold exploration company with 23,685 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. The geological information contained in this news
release has been prepared by Augen Gold's Project Geologist, Gordon
McRoberts, P.Geo., who is a Qualified Person for the Company's
Jerome Project under the definitions established by National
Instrument 43-101. The potential quantities and grades disclosed
herein are conceptual in nature and there has been insufficient
exploration to define a mineral resource. It is uncertain if
further exploration will result in the target being delineated as a
mineral resource. For more information on the South Swayze
Property, please refer to please refer to the Company's NI 43-101
compliant technical report "Amended and Restated Technical Report
on the Augen Gold Corp. Claims, Porcupine Mining Division, District
of Sudbury, Ontario, Canada" (effective April 8, 2008 available on
the Company's profile 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. pJ. David Masonbr/Chief
Executive Officer and Directorbr/Augen Gold Corp./p pTel:
416-915-4231br/Email: a
href="mailto:dmason@augengold.ca"dmason@augengold.ca/a/p pFor more
information on Augen Gold, visit our website at
www.augengold.cabr/The Company's public documents may be accessed
at a href="http://www.sedar.com"www.sedar.com/a/p
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