Business
Augen Announces Augen Resource 2 Balance Fund NAV Recalculation
Augen Announces Augen Resource 2 Balance Fund NAV Recalculation.
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\n\nShares outstanding: 28,857,282\n\nTORONTO, June 13 /CNW/ - Augen Capital Corp. (\"Augen\") (TSX-V: AUG)\nannounces that the net asset value (\"NAV\") was not reported accurately for\nAugen Resource 2 Balance Fund (\"Augen R2B\") as a result of tax liabilities\narising from it not qualifying as a mutual fund corporation as defined under\nthe Federal Income Tax Act since its inception in September 2002.\nFour prior Augen limited partnerships, prior to Augen Limited Partnership\n2003, with net assets amounting to $1.9 million were rolled into Augen R2B\nsince inception. As a result of incorrect valuations, the redemption NAV per\nunit paid to investors who redeemed their units has generally been greater\nthan the expected recalculated NAV per unit. Augen R2B currently has fifteen\nremaining unitholders of a total of fifty original investors. Augen R2B will\nbe reimbursed by Augen, the Manager of Augen R2B, for any excess management\nfees Augen has received as a result of incorrect valuations. Augen is\ncurrently recalculating the NAV.\nThe impact on Augen's current financial results has not been determined\nbut is expected to be in the range of two hundred to five hundred thousand\ndollars or $0.007 to $0.016 per share. It is expected that the NAV\nrecalculation effort will be completed in the next several weeks and prior to\nthe release of Q2 2006 results.\nThe net assets of Augen Limited Partnership 2004-1 and Augen Limited\nPartnership 2003, totalling $16.7 million, were acquired by Augen Resource\nStrategy Fund (\"Augen RSF\") on May 1, 2006. Legal counsel for Augen RSF has\nmade all the necessary elections and have confirmed that Augen RSF qualifies\nas a mutual fund corporation under the Federal Income Tax Act. It is\nanticipated that the net assets of Augen Limited Partnership 2006 and Augen\nLimited Partnership 2005 will be acquired by Augen RSF when liquidity is\nachieved. It is expected that Augen RSF will be listed on FundSERV prior to\nthe expiry of the September 1, 2006 redemption hold period.\n\nAbout Augen Capital\n\nBased in Toronto, Augen is a merchant bank specializing in the financing\nof primarily early stage resource companies and is an industry leader in\ntax-advantaged flow-through investments in Canada's resource sector. Our\nManaged Products division earns fees related to the limited partnerships ...