TORONTO, Oct. 31 /CNW/ - Augen Capital Corp. (the "Augen") (TSX-V: AUG)
is pleased to announce the second close on October 28, 2005 of the latest
initial public offering. Augen Limited Partnership 2005 (the "Partnership")
has now raised $5,068,000 to date.
The emerging resource flow-through Partnership prospectus offering is
co-led by Berkshire Securities and IPC Securities. Syndicate members included
Wellington West Capital and Foster & Associates. Selling Group members
included CIBC Wood Gundy, Raymond James, Dundee Securities, Industrial
Alliance, Union Securities, Jones Gable, TD Securities, Hampton Securities,
and Northern Securities. FundTrade and IPC Investment Corp. participated via
the offering memorandum & prospectus wrap.
Consistent with previous Augen partnerships, the 2005 Partnership will
primarily invest in mining exploration companies with market capitalizations
under $15,000,000. Reflecting the evolution of Augen's investment strategy,
the 2005 Partnership will also invest at least 25% of its assets in
exploration companies with larger market capitalization. The 2005 Partnership
will invest in gold, uranium, zinc and oil & gas exploration companies. This
represents a section of commodities that Augen considers in short supply.
Augen believes that any discoveries made by the Partnership's investee
companies will have an excellent chance of being financed into production. The
maximum offering for the Partnership is $15,000,000.
Augen Limited Partnership 2004-1 is among the top performing flow-through
products in the industry with a September 30, 2005 Net Asset Value ("NAV") per
unit of $110. Factoring in a 100% investment tax deduction, a federal tax
credit of 15%, and varying provincial credits, the after-tax or break-even NAV
for an Ontario resident is approximately $63 per unit. This translates into
cumulative after-tax investment performance for the Augen Limited Partnership
2004-1 of 74.6% to date.
The final close of the Augen Limited Partnership 2005 offering will be on
November 30, 2005.
Augen is also pleased to announce the appointment of Jack Mullins to the
Augen Capital Corp. Advisory Board. Mr. Mullins brings to Augen extensive
experience evaluating resource company prospects during a period of more than
30 years with the consulting firm of Watts, Griffis & McOuat. Mr. Mullins
joins an already distinguished Advisory Board made up of Robert Blair, Lee
Barker, Bob Jackson, Hugh Squair and Rod Whyte.
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. 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 Fund.
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
