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Augen Gold Corp. announces settlement of portion of flow-through indemnity
Augen Gold Corp. announces settlement of portion of flow-through indemnity
About this update from Gold Finder Resources Ltd.
[{"type":"text","content":"\n\n\n\n Aug. 17, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nShares outstanding: 76,655,940\n\nTORONTO, Aug. 17 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) announces a settlement of a portion of a flow-through indemnity obligation for a total value of $442,740.86 subject to regulatory approval consisting of the issuance of 2,604,358 Units at a deemed value of $0.17 per Unit.\nEach Unit will consist of one common share of the Company and one common share purchase warrant. Each whole Warrant will entitle the holder to purchase one common share at a price of $0.25 for a period of 18 months following the closing date. All securities issued in conjunction with the settlement will be subject to a hold period, which expires four months after closing.\nThe Company was committed to spend $3,358,520, by December 31, 2009, on Canadian Exploration Expenditures ("CEE") representing the entire amount raised through its June 2008 flow-through financing, included as part of the initial public offering. As at December 31, 2009, the Company had spent $1,961,846 of the $3,358,520 CEE commitment, which resulted in a reduction of $1,396,674 to the previously renounced CEE of $3,358,520 and this reduction was allocated proportionately among all purchasers of flow-through shares on the initial public offering. The Company, in accordance with the terms of certain financing and subscription arrangements with purchasers of flow-through shares offered during the Company's initial public offering, is required to indemnify flow-through shareholders for an amount equal to the amount of any tax payable by the shareholder as a result of the reduction of previously renounced CEE.\nPursuant to the settlements noted above, the Company settled with arm's length subscribers purchasing more than 56% of the $3,358,520 flow-through financing on the initial public offering. The Company is in discussions with a numb...