Business
Augen enters into letter of intent with BluMont Capital
Augen enters into letter of intent with BluMont Capital.
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\nShares outstanding: 35,915,615\n\n\nTORONTO, June 12 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is\npleased to announce that it has entered into a letter of intent with BluMont\nCapital ("BluMont"), a wholly-owned subsidiary of Integrated Asset Management\nCorp. (TSX: IAM). The terms of the letter of intent are such that Augen will\ncontinue as consultant responsible for the sourcing of mineral flow-through\ninvestments to both the existing flow-through products and to new flow-through\nproducts to be launched by BluMont whereas BluMont will assume the portfolio\nmanagement, sales and marketing, and back-office administration functions\nrelating to Augen's mineral flow-through business.\n\n\nAugen's top-tier investment performance on its flow-through limited\npartnership offerings since 2002, which has averaged a 93% after-tax rate of\nreturn, will now be complemented by BluMont's national sales force which\nspecializes in alternative investments. BluMont will also assume the portfolio\nmanager and back office administration functions.\n\n\nAugen will continue to benefit from indirect holdings in these\nflow-through investment portfolios. An appropriate revenue sharing arrangement\nbetween Augen and BluMont is contemplated, representing each party's\nresponsibilities for both existing and future products.\n\n\n"Our resource expertise in the mineral flow-through sector is greatly\nenhanced with this agreement. Augen shareholders will benefit from expanded\nnational sales penetration and Augen will now have even greater focus on stock\nselection in the emerging resource sector", said J. David Mason, Chairman of\nAugen.\n\n\nAugen believes that the agreement should have a substantial positive\nimpact on future earnings, cash flow and net asset value based on reasonable\nsales projections. The transaction is expected to close on July 31, 2007 and\nis subject to the negotiation, settlement and execution of a definitive\nagreement, approval by the respective boards of directors, and regulatory\napproval.\n\n\nAbout Augen Capital\n\n\nAugen is a Toronto-based merchant bank which primarily invests in early\nstage resource companies through its core investment portfolio and is an\nindustry leader in tax-advantaged mineral flow-through investments in Canada's\nresource sector.\n\n\nAbout BluMo...