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Augen Capital provides loan facility to Augen Gold
Augen Capital provides loan facility to Augen Gold
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[{"type":"text","content":"\n\n\n\nNov. 12, 2009 (Canada NewsWire Group) -- 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 CapitalAugen 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.comThe Company's public documents may be accessed at www.sedar.comNeither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility 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 t...