GoldOn Resources (TSXV:GLD)
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TORONTO, Sept. 27 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
Shares outstanding: 83,701,205
TORONTO, Sept. 27 /CNW/ - Further to its press releases dated August 16,
2010 and September 2, 2010, Augen Gold Corp. ("Augen Gold"
or the "Company") (TSX-V: GLD),
is pleased to announce a proposed second closing of its previously
announced private placement offering (the "Offering"). On
August 13, 2010, Augen Gold announced a private placement of
Flow-Through Units and Units for gross proceeds of up to $2,000,000. On
September 2, 2010 the Company announced that it had completed the first
closing of the Offering, raising gross proceeds of $766,100.
Due to increased investor demand, Augen Gold has increased the amount of
financing on the proposed second closing from $1,233,900 to up to
$3,400,000 for aggregate gross proceeds of up to $4,166,100 pursuant
to the first and second closings of the Offering. Industrial Alliance
Securities and Secutor Capital Management Corporation will again act as
co-lead Agents (collectively, the "Agents") on the second
closing of the Offering. The second closing of the Offering is subject
to regulatory approval.
The second closing of the Offering will consist of the sale of up to
12,522,727 Flow-Through Units at $0.22 per Flow-Through Unit for gross
proceeds of up to $2,755,000, and the sale of up to 3,794,117 Units at
$0.17 per Unit for gross proceeds of up to $645,000.
Each Flow-Through Unit will consist of one common share, issued on a
flow-through basis, and one common share purchase warrant of the Company
(a "Warrant"). Each Unit will consist of one common share of the
Company and one Warrant. Each Warrant entitles the holder to purchase
one common share at a price of $0.25 for a period of 18 months following
the closing date. The Company has granted the Agents an over-allotment
option of 15%, exercisable at the issue price for a period of 30 days
following closing.
The securities issued pursuant to the second closing of the Offering
will subject to trade restrictions expiring four months after closing,
pursuant to applicable securities laws. Compensation to the Agents will
consist of a cash commission of 8% of the gross proceeds raised and the
number of agent's warrants representing 8% of the number of Flow-Though
Units and Units sold pursuant to the second closing of the Offering.
Each such agent's warrant will entitle the holder to acquire one common
share for $0.25 for a period of 18 months from the date of issuance.
Net proceeds of the financing will be used to fund exploration and for
working capital purposes. The aggregate proceeds raised from the
issuance of the flow-through common shares and units will be used by the
company to incur exploration expenditures on its properties in Ontario,
which will constitute Canadian exploration expenses and flow-through
mining expenditures (as defined in the Income Tax Act (Canada)),
which will be renounced to purchasers for the 2010 taxation year.
About Augen Gold
Augen Gold is a gold exploration company with 23,685 hectares of staked
and patented mining claims in the Southern Swayze Greenstone Belt,
including the formerly producing Jerome Gold Mine. The claims cover a 45
kilometre long section of the Ridout Deformation Zone, believed to be
the western extension of the Kirkland Lake/Larder Lake Break. The
geological setting is comparable to the major gold camps of Timmins and
Kirkland Lake, and the claims contain numerous gold showings that have
received very little historical exploration. Augen Gold is the first
company to have assembled such a coherent ground position. Augen Gold
has performed a detailed airborne geophysical survey over the whole
area, and its sampling program has confirmed the historically reported
gold values. The correlation of many gold showings with geophysical
features indicates excellent potential for the discovery of additional
deposits. The Company's objectives are to aggressively explore the gold
showings that correlate with geophysical anomalies, continue resource
definition at the Jerome Mine, and to expand its property portfolio with
highly prospective mineral assets.
The geological information contained in this news release has been
prepared by Augen Gold's Project Geologist, Gordon McRoberts, P.Geo.,
who is a Qualified Person for the Company's Jerome Project under the
definitions established by National Instrument 43-101. The potential
quantities and grades disclosed herein are conceptual in nature and
there has been insufficient exploration to define a mineral resource. It
is uncertain if further exploration will result in the target being
delineated as a mineral resource.
For more information on the South Swayze Property, please refer to
please refer to the Company's NI 43-101 compliant technical report
"Amended and Restated Technical Report on the Augen Gold Corp. Claims,
Porcupine Mining Division, District of Sudbury, Ontario, Canada"
(effective April 8, 2008 available on the Company's profile at www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. These statements
are based on information currently available to the Company and the
Company provides no assurance that actual results will meet management's
expectations. Forward-looking statements include estimates and
statements that describe the Company's future plans, objectives or
goals, including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as "believes", "anticipates",
"expects", "estimates", "may", "could", "would", "will", or "plan".
Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results relating to, among other
things, results of exploration, project development, reclamation and
capital costs of the Company's mineral properties, 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 minerals; litigation,
legislative, environmental and other judicial, regulatory, political and
competitive developments; technological and operational difficulties
encountered in connection with the activities of the Company; and other
matters discussed in this news release. This list is not exhaustive of
the factors that may affect any of the Company's forward-looking
statements. These and other factors should be considered carefully and
readers should not place undue reliance on the Company's forward-looking
statements. The Company does not undertake to update any
forward-looking statement that may be made from time to time by the
Company or on its behalf, except in accordance with applicable
securities laws.
pJ. David Masonbr/Chief Executive Officer and Directorbr/Augen Gold Corp./p pTel: 416-915-4231br/Email: a href="mailto:dmason@augengold.ca"dmason@augengold.ca/a/p pFor more information on Augen Gold, visit our website at www.augengold.cabr/The Company's public documents may be accessed at a href="http://www.sedar.com"www.sedar.com/a/p