TORONTO, Aug. 29 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) is pleased to announce that it has executed a definitive agreement with BluMont Capital ("BluMont"), a wholly-owned subsidiary of Integrated Asset Management Corp. (TSX: IAM), pursuant to which Augen has transferred to BluMont the portfolio management, sales and marketing, and back-office functions of its flow-through fund business, including Augen Resource Strategy Fund ("Augen RSF").
Augen will continue to act as a flow-through consultant responsible for the sourcing of mineral flow-through investments to both the existing flow-through funds and to new Blumont-Augen flow-through funds. The new flow-through funds will be established by BluMont and will have a mining focus. BluMont will assume the portfolio management, sales and marketing, and back-office administration functions relating to Augen's flow-through fund business including Augen RSF. Subject to unitholder approval, BluMont will replace Augen in its current role as Manager to Augen RSF.
Augen will share the management and performance fees payable by existing and new funds and will share the due diligence fees from the resource issuers in which the funds invest. The agreement expires on December 31, 2010 unless extended by BluMont and Augen.
Augen believes that the agreement should have a substantial positive impact on future earnings, cash flow and net asset value based on reasonable sales projections. "We are delighted that Augen's top-tier investment performance on its flow-through limited partnership offerings is now complemented by a national sales force. Our track record will help with improved sales penetration which should translate into higher sales levels. This deal permits Augen to focus on its core expertise - stock selection in the emerging resource sector and Augen continues to benefit from revenue streams related to the indirect holdings in these flow-through investment portfolios," said J. David Mason, Chairman of Augen.
About Augen Capital
Augen Capital is a Toronto-based merchant bank which finances early stage resource companies. Augen is an industry leader in tax-advantaged flow-through investments in Canada's resource sectors having raised over $58 million in flow-through limited partnership assets since inception. Augen manages a core portfolio of emerging resource stocks and three resource flow-through Limited Partnerships. Augen holds over 100 gold, base metals and uranium exploration and development public companies with direct holdings in its merchant banking portfolio and indirect holdings in its structured product portfolios.
About BluMont Capital
IAM is Canada's leading alternative asset management company with approximately $3 billion in assets and committed capital under management in private corporate debt, private equity, managed futures, real estate investment management, property management and, through its wholly-owned subsidiary BluMont Capital, alternative retail investments including hedge funds and structured products.
For more information on Augen please visit our website at www.augencc.com
Augen'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.
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This news release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this new release including expected growth, results of operations, performance and business prospects and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the investee companies expect to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company's and investee companies. Forward-looking statements are given only as at the date of this news release and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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