Augen Capital Requisitions Special Meeting of Shareholders of Augen Gold

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[{"type":"text","content":"\n\n\n\nShares outstanding: 36,615,615\n\n\nTORONTO, Dec. 24 /CNW/ - Augen Capital Corp. (Augen Capital) (TSX-V: AUG)\nannounced today that, as a registered holder of 4,040,000 common shares of\nAugen Gold Corp. (Augen Gold) (TSX-V: AUJ), that it has requisitioned the\nDirectors of Augen Gold to call a Special Meeting of Shareholders.\n\n\nAt the Special Meeting, Augen Gold shareholders will be asked to vote on\nthe following:\n\n\n- A debt-to-share conversion whereby Augen Gold would issue to Augen\n Capital 8,974,808 common shares in Augen Gold at an issue price of\n $0.125 per share, in full satisfaction of the $1.1 million\n outstanding debt owed to Augen Capital;\n\n- The removal of the current Directors of Augen Gold, to be replaced by\n a new slate of Directors whose names will be provided by Augen\n Capital no later than December 31, 2008;\n\n- Any other business as may properly come before the Special Meeting,\n including matters necessary to implement the first two items.\n\n\nAugen Capital previously announced that it had proposed to negotiate a\nnew Management Services Agreement that would have been at a reduced net cost\nof $8,500 per month, to assist in the preservation of cash at Augen Gold. In\naddition, Augen Capital has proposed the repayment of the loan from Augen\nCapital through conversion into shares of Augen Gold.\n\n\n"The interests of shareholders are being damaged by the current Board's\nindecision. In an environment of economic uncertainty, Augen Capital has made\na number of offers to help preserve cash at Augen Gold," said J. David Mason,\nChairman and CEO of Augen Capital. "As Augen Gold's founding shareholder and\nprimary source of funds, Augen Capital is committed to doing what is needed to\nsecure Augen Gold's future, but our efforts are being rebuffed by some Augen\nGold Directors. This is untenable for shareholders and cannot be allowed to\ncontinue."\n\n\nAbout Augen Capital\n\n\nAugen Capital Corp. ("Augen") (TSX-V: AUG) is a Toronto-based public\nmerchant bank specializing in the financing of and investment in emerging\nresource companies. Augen manages a merchant banking hard dollar portfolio of\nemerging resource stocks including private companies and is an industry\nperformance leader in tax-advantaged flow-through investments in Canada's\nresource sector hav...

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