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Augen Gold Corp. to close $4,600,000 brokered financing and announces further $300,000 financing
Augen Gold Corp. to close $4,600,000 brokered financing and announces further $300,000 financing
About this update from Gold Finder Resources Ltd.
[{"type":"text","content":"\n\n\n\n May 10, 2010 (Canada NewsWire Group) -- Shares outstanding: 49,916,560\n\n Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: GLD) is pleased to advise that the previously announced $4,000,000 brokered private placement financing plus over-allotment option of 15%, for gross proceeds of $4,600,000, will close on Thursday, May 13, 2010. Pursuant to this financing, a total of 18,770,635 hard dollar units ("Hard Dollar Units") will be sold at $0.17 per unit for gross proceeds of approximately $3,191,000, and a total of 6,404,510 flow-through units ("Flow-Through Units") will be sold at $0.22 per unit for gross proceeds of approximately $1,409,000.\nThe Company is also pleased to announce a further private placement financing, which will be the final closing in this series, consisting of an additional 1,764,705 Hard Dollar Units for gross proceeds of $300,000 to be sold on the same terms subject to regulatory approval.\nFor both of these private placement financings, each Flow-Through Unit will consist of one common share and one-half common share purchase warrant ("Warrant") of the Company. Each Hard Dollar Unit will consist of one common share of the Company and one 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., who is 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 ...