Business
Augen signs definitive agreement with BluMont Capital
Augen signs definitive agreement with BluMont Capital.
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Aug. 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is\npleased to announce that it has executed a definitive agreement with BluMont\nCapital ("BluMont"), a wholly-owned subsidiary of Integrated Asset Management\nCorp. (TSX: IAM), pursuant to which Augen has transferred to BluMont the\nportfolio management, sales and marketing, and back-office functions of its\nflow-through fund business, including Augen Resource Strategy Fund ("Augen\nRSF").\n\n\nAugen will continue to act as a flow-through consultant responsible for\nthe sourcing of mineral flow-through investments to both the existing\nflow-through funds and to new Blumont-Augen flow-through funds. The new\nflow-through funds will be established by BluMont and will have a mining\nfocus. BluMont will assume the portfolio management, sales and marketing, and\nback-office administration functions relating to Augen's flow-through fund\nbusiness including Augen RSF. Subject to unitholder approval, BluMont will\nreplace Augen in its current role as Manager to Augen RSF.\n\n\nAugen will share the management and performance fees payable by existing\nand new funds and will share the due diligence fees from the resource issuers\nin which the funds invest. The agreement expires on December 31, 2010 unless\nextended by BluMont and Augen.\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. "We are delighted that Augen's top-tier investment\nperformance on its flow-through limited partnership offerings is now\ncomplemented by a national sales force. Our track record will help with\nimproved sales penetration which should translate into higher sales levels.\nThis deal permits Augen to focus on its core expertise - stock selection in\nthe emerging resource sector and Augen continues to benefit from revenue\nstreams related to the indirect holdings in these flow-through investment\nportfolios," said J. David Mason, Chairman of Augen.\n\n\nAbout Augen Capital\n\n\nAugen Capital is a Toronto-based merchant bank which finances early stage\nresource companies. Augen is an industry leader in tax-advantaged flow-through\ninvestments in Canada's resource sectors having raised over $58 million in\nflow-through limited p...