Business
Augen Gold Corp. announces closing of $450,000 private placement
Augen Gold Corp. announces closing of $450,000 private placement
About this update from Gold Finder Resources Ltd.
[{"type":"text","content":"\n\n\n\n May 20, 2010 (Canada NewsWire Group) -- Shares outstanding: 76,655,947\n\n Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) is pleased to announce that it has closed the final tranche of its previously announced private placement for gross proceeds of $450,000. Industrial Alliance Securities and Secutor Capital Management Corporation acted as co-lead Agents (collectively the Agents) on this brokered private placement.\nThe private placement consisted of 681,816 Flow-Through Units at $0.22 per Flow-Through Unit for gross proceeds of $150,000, and 1,764,700 Units at $0.17 per Unit for gross proceeds of $300,000, which includes the exercise by the Agents of the 15% over-allotment option granted by the Company. A portion of the private placement financing, the sale of 568,181 Flow-Through Units for $125,000, was completed with MineralFields Group.\nEach Flow-Through Unit consists of one common share and one-half common share purchase warrant of the Company. Each Unit will consist of one common share of the Company and one common share purchase warrant (each whole warrant being, a "Warrant"). Each Warrant will entitle the holder to purchase one common share at a price of $0.25 until November 14, 2011. The Company will have the right to accelerate the expiry date of the Warrants if the volume weighted average closing price of Augen Gold's common shares, as traded on the TSX-V, exceeds $0.40 per share for more than 10 consecutive trading days following the date that is four months and one day after the date of closing, being the date of this release. In that event, the Warrants will expire 30 days after Augen Gold has given notice of the accelerated expiry period to the Warrant holders.\nThe securities issued pursuant to the private placement will be subject to trade restrictions expiring on September 21, 2010 pursuant to applicable securities laws. Compensation to the agents consisted of a cash commission of $48,260 and 195,722 agent's warrants, each whole agent's warrant entitling the holder to acquire one share for $0.25 until November 14, 2011.\nNet proceeds of the financing will be used to fund exploration and to increase working capital. The aggregate proceeds raised from the issuance of the flow-through common shares and units will be used by the Company to incur exploration ex...