Shares outstanding: 36,615,615
TORONTO, Dec. 24 /CNW/ - Augen Capital Corp. (Augen Capital) (TSX-V: AUG) announced today that, as a registered holder of 4,040,000 common shares of Augen Gold Corp. (Augen Gold) (TSX-V: AUJ), that it has requisitioned the Directors of Augen Gold to call a Special Meeting of Shareholders.
At the Special Meeting, Augen Gold shareholders will be asked to vote on the following:
- A debt-to-share conversion whereby Augen Gold would issue to Augen
Capital 8,974,808 common shares in Augen Gold at an issue price of
$0.125 per share, in full satisfaction of the $1.1 million
outstanding debt owed to Augen Capital;
- The removal of the current Directors of Augen Gold, to be replaced by
a new slate of Directors whose names will be provided by Augen
Capital no later than December 31, 2008;
- Any other business as may properly come before the Special Meeting,
including matters necessary to implement the first two items.
Augen Capital previously announced that it had proposed to negotiate a new Management Services Agreement that would have been at a reduced net cost of $8,500 per month, to assist in the preservation of cash at Augen Gold. In addition, Augen Capital has proposed the repayment of the loan from Augen Capital through conversion into shares of Augen Gold.
"The interests of shareholders are being damaged by the current Board's indecision. In an environment of economic uncertainty, Augen Capital has made a number of offers to help preserve cash at Augen Gold," said J. David Mason, Chairman and CEO of Augen Capital. "As Augen Gold's founding shareholder and primary source of funds, Augen Capital is committed to doing what is needed to secure Augen Gold's future, but our efforts are being rebuffed by some Augen Gold Directors. This is untenable for shareholders and cannot be allowed to continue."
About Augen Capital
Augen Capital Corp. ("Augen") (TSX-V: AUG) is a Toronto-based public merchant bank specializing in the financing of and investment in emerging resource companies. Augen manages a merchant banking hard dollar portfolio of emerging resource stocks including private companies and is an industry performance leader in tax-advantaged flow-through investments in Canada's resource sector having raised over $80 million in flow-through limited partnership assets since inception. Augen holds over one hundred gold, base metals and uranium exploration and development public and private companies with direct holdings in its merchant banking portfolio and consulting assets in flow-through limited partnerships.
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. The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.