Business
Augen Gold Corp. increases financing from $1,750,000 to $4,000,000
Augen Gold Corp. increases financing from $1,750,000 to $4,000,000
About this update from Gold Finder Resources Ltd.
[{"type":"text","content":"\n\n\n\n Apr. 29, 2010 (Canada NewsWire Group) -- Shares outstanding: 49,916,560\n\n Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) has increased its previously announced financing to $4,000,000 subject to regulatory approval and closing. Industrial Alliance Securities and Secutor Capital Management Corporation will act as co-lead Agents (collectively the Agents) on this brokered private placement.\nThe private placement will consist of the sale of up to 4,545,455 Flow-Through Units at $0.22 per Flow-Through Unit for gross proceeds of $1,000,000, and the sale of up to 17,647,059 Units at $0.17 per Unit for gross proceeds of $3,000,000. The Company has granted the Agents an over-allotment option of 15%, exercisable at the issue price for a period of 30 days following the closing of this offering.\nEach Flow-Through Unit will consist 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 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. 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. In that event, the Warrants will expire 30 days after Augen Gold has given notice of the accelerated expiry to the Warrant holders.\nNet proceeds of the financing will be used to fund exploration, retire indebtedness to Augen Capital Corp., a related party, and working capital. All securities issued in conjunction with the offering will be subject to a hold period, which expires four months after closing. The aggregate proceeds raised from the issuance of the flow-through common shares and units will be used by the company to incur exploration expenditures on its properties in Ontario, which will constitute Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act (Canada)), which will be renounced to purchasers for the 2010 taxation year.\n\nAbout Augen Gold\n\nAugen Gold is a gold exploration company with 23,877 hectares of staked and patented mining claims in the So...