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Augen Capital Demands Resignation of Augen Gold Director
TORONTO, Jan. 6 /CNW/ - Augen Capital Corp. (Augen Capital) (TSX-V: AUG) announced today that it ...
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[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 6 /CNW/ - Augen Capital Corp. (Augen Capital) (TSX-V: AUG)\nannounced today that it has demanded the resignation of Joe Leeder from the\nBoard of Directors of Augen Gold Corporation (Augen Gold) (TSX-V: AUJ).\n\n\nAugen Capital is the largest shareholder of Augen Gold and has submitted\na proposal that would allow Augen Gold to complete a debt-for-shares\nconversion that would repay $1.1 million owed to Augen Capital, while\nconserving cash for the benefit of all shareholders.\n\n\nMr. Leeder is Chief Financial Officer of Envoy Capital Group Inc.\n("Envoy") which is a significant shareholder of Augen Gold. He has repeatedly\nrejected the terms of the debt-for-shares conversion during negotiations over\nseveral months. On January 3, 2009, the Chief Executive Officer of Envoy\ne-mailed David Mason, the Chairman and CEO of Augen Capital attacking both the\nconversion and Mr. Mason personally.\n\n\nAugen Capital has demanded Mr. Leeder's resignation because it believes\nthat, as a Director of Augen Gold, Mr. Leeder is acting of behalf of Envoy\nrather than fulfilling his fiduciary duty to Augen Gold.\n\n\nThe full text of the letter to Mr. Leeder from Augen Capital's legal\ncounsel, Stikeman Elliott LLP, follows:\n\n\nBY E-MAIL January 6, 2009\n\n\nMr. Joe Leeder\nDirector\nAugen Gold Corp.\nThe Exchange Tower, Suite 720\n130 King Street West\nToronto, ON M5X 1A6\n\n\nDear Mr. Leeder:\nRe: Augen Gold Corp. (the "Augen Gold")\n\nOn behalf of Augen Capital Corp. ("Augen"), we are writing in response to\ne-mail correspondence received by David Mason on Saturday, January 3,\n2009 from Geoffrey Genovese of Envoy Capital Group Inc. ("Envoy"). We\nunderstand that you are Chief Financial Officer as well as Vice President\nof Mergers and Acquisitions of Envoy.\n\nAs you know, Augen has requisitioned a special meeting of Augen Gold\nshareholders to consider, among other things, a proposed debt for share\nconversion of an amount owing to Augen. Such a conversion, Augen\nbelieves, is in the best interests of all Augen Gold shareholders, since\nit would conserve their company's cash.\n\nYour employer, Envoy, is attempting to obstruct and exploit this\ndemocratic process for its own financial gain.\n\nEnvoy is not "fighting on behalf of all the shareholders" as Mr. Genovese\n...