Business
Augen Gold Special Committee Determines Debt-to-shares Conversion is in Company's Best Interests
March 13 Meeting to Proceed as Scheduled Shares outstanding: 36,615,615 TORONTO, March 6 /CNW/ - ...
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[{"type":"text","content":"\n\n\n\nMarch 13 Meeting to Proceed as Scheduled\n\n\nShares outstanding: 36,615,615\n\n\nTORONTO, March 6 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG)\nannounced today that the special committee of Augen Gold Corp. ("Augen Gold")\n(TSX-V: AUJ) has concluded that the debt-to-shares conversion (the\n"Conversion") proposed by Augen Capital is in the best interests of Augen\nGold.\n\n\nThe special committee's conclusion validates the position maintained by\nAugen Capital since December 2008. The special committee has also concluded\nthat the Conversion should be at a price between $0.15 and $0.18 per share,\nrather than the $0.125 currently proposed. As it has previously offered, Augen\nCapital will agree to convert its outstanding loan to shares at $0.15 per\nshare, despite the much lower market price of Augen Gold shares.\n\n\nThe special meeting of shareholders of Augen Gold will proceed on March\n13, 2009 as scheduled. Augen Capital was forced to call the meeting because\nthe special committee refused to respond to Augen Capital's proposals in\nrespect of the Conversion, and refused to call a meeting when one was\nrequisitioned by Augen Capital as the largest shareholder of Augen Gold.\n\n\n"Augen Capital is pleased that the special committee now acknowledges\nthat Augen Capital's proposal for the Conversion is in the best interests of\nAugen Gold. However, we are frustrated that the special committee has delayed\nthe resolution of this issue to the detriment of Augen Gold," said J. David\nMason, Chairman of Augen Gold and of Augen Capital.\n\n\n"Augen Capital has at all times acted in the best interests of Augen Gold\nand its shareholders. We are disappointed that after advancing $1.1 million to\nAugen Gold in good faith to support the company, we had to requisition a\nshareholders' meeting to cause the special committee to agree to a commercial\nresolution," Mr. Mason said.\n\n\nThe special committee continues to work against Augen Gold's best\ninterests by alleging that the special meeting of shareholders has not been\nvalidly called. This claim is unfounded and contradicts the special\ncommittee's conclusion that the Conversion is in Augen Gold's best interests\nsince the rules of the TSX Venture Exchange require shareholder approval for\nthe Conversion. Although the s...