Shares outstanding: 28,857,282
TORONTO, June 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG)
wishes to announce that it has completed a non-brokered private placement of
3,333,334 units at $0.30 for gross proceeds of $1,000,000.
Each unit consists of one common share at a price of $0.30 and one
non-transferable common share purchase warrant (the "warrant"). Each full
warrant entitles the holder to purchase one additional common share (the
"warrant share") of the Company at a price of $0.35 per warrant share for a
period of twenty four months from the closing date. Subject to the approval of
the TSX Venture Exchange, Augen will pay finder's fees of up to 5% cash and 2%
broker warrants to arm's length persons. The common shares and warrants are
subject to a four-month hold period.
"Augen decided to limit the total funds raised to $1 million as it is
currently examining several alternate financings through new strategic
partnerships which would not be dilutive to existing shareholders. Augen
experienced an exceptional first quarter in fiscal 2006 with substantial
capital gains in its proprietary merchant banking portfolio. The merchant
banking portfolio is becoming substantial and is improving Augen's ability to
support resource deal-flow," said J. David Mason, chairman of Augen.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing
of primarily early stage resource companies and is an industry leader in
tax-advantaged flow-through investments in Canada's resource sector. Our
Managed Products division earns fees related to the limited partnerships and
mutual funds including setup, due diligence, and annual and performance fees.
Our Merchant Banking division provides financing and strategic management
support to resource investee companies and strives to maximize net gains
realized on its core investment portfolio of emerging resource stocks. Augen
has over $30 million in assets under administration, including its merchant
banking investment portfolio, resource flow-through limited partnerships, and
Augen Resource Strategy Fund.
For more information on Augen Capital, visit our website at
www.augencc.com
The company's public documents may be accessed at www.sedar.com
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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
