TORONTO, Nov. 8 /CNW/ - Augen Capital Corp. (the "Augen") (TSX-V: AUG) is
pleased to announce that Augen Resource 2 Balance Fund Inc. ("R2B"), a private
mutual fund corporation, has proposed a tax-deferred offer to acquire all the
units of Augen Limited Partnership 2003 ("LP 2003"), as at valuation date
October 31, 2005. The proposed transaction is subject to unitholder approval.
The LP 2003 Net Asset Value ("NAV") per unit as at October 31, 2005 is
$64.86 and is subject to independent valuation review yet to be conducted by
R2B. Factoring in a 100% investment tax deduction, a federal tax credit of up
to 15%, and varying provincial credits, the after-tax or break-even NAV for an
Ontario resident is approximately $61 per unit. This translates into
cumulative after-tax investment performance of 6.3% since the final close of
partnership subscriptions in December 2003.
The exchange value is yet to be determined however based on a NAV per
unit of $9.07 as at September 30, 2005, unitholders would receive 7.15 units
in R2B for every unit held in LP 2003.
Unitholders in LP 2003 who exchange into units of R2B will be permitted
to redeem, subject to certain conditions including liquidity of R2B, on
March 31st, 2006. It is expected that R2B will increase the NAV calculation
frequency to monthly as part of this proposed exchange offer.
Alternatively, unitholders in LP 2003 electing to invest in Augen Limited
Partnership 2005 ("LP 2005") will be permitted to redeem on closing of the
proposed R2B exchange offer, subject to certain conditions including a maximum
of $3,000,000 available for reinvestment in LP 2005, which may be increased at
the discretion of the General Partner of LP 2005.
The final close of Augen LP 2005 is November 30th, 2005 and the maximum
offering is $15,000,000. The exchange offer of LP 2003 by R2B is scheduled to
close in December 2005 and no later than January 2006.
Augen Limited Partnership 2004-1 is among the top performing flow-through
products in the industry with a September 30, 2005 NAV per unit of $110.
Factoring in a break-even NAV of $63 per unit for an Ontario resident, this
translates into cumulative after-tax investment performance of 74.6% to date.
About Augen Capital
Based in Toronto, Augen Capital is a merchant bank specializing in the
financing of, and investment in, early stage resource companies and is an
industry leader in tax-advantaged flow-through investments in Canada's
resource sectors. Augen has raised over $20 million from investors in ten
previous limited partnerships, including $16 million raised since 2003. The
Company now has over $20 million in assets under management, including a core
portfolio of emerging resource stocks, three Resource Flow-Through Limited
Partnerships, and its mutual fund, Augen Resource 2 Balance.
The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
-------------------------------------------------------------------------
This news release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
fact, included herein are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed in the Company's documents filed
from time to time with the British Columbia Securities Commission and the
United States Securities & Exchange Commission.
%SEDAR: 00008335E
