Purecore Metals Inc. press release
Augen Gold Enters into Agreement for Shares-for-Debt Conversion
CSE - Canadian National Stock Exchange ยท Canada
Shares outstanding: 24,925,685
TORONTO, March 26 /CNW/ - Augen Gold Corp. ("Augen Gold" or "the Company") (TSX-V: AUJ) announced today that it has entered into an agreement with Augen Capital Corp. ("Augen Capital"), effective March 13, 2009, to settle $1,121,851.51 in outstanding debt owed to Augen Capital by issuance of 7,479,010 shares in the Company's common stock to Augen Capital.
The shares-for-debt conversion was voted on at the special meeting of the Company's shareholders held on March 13, 2009 (the "Meeting") and received the unanimous support of the disinterested shareholders present in person or by proxy at the Meeting. It has also been approved by the TSX Venture Exchange (the "TSXV").
Augen Capital, which held 4,040,000 common shares of the Company, or approximately 16.2% of the Company's issued and outstanding common shares, prior to the Meeting, will hold a total of 11,519,010 common shares, or approximately 35.5% of the issued and outstanding shares of the Company, following the shares-for-debt conversion. As a result, Augen Capital will become a "Control Person" of Augen Gold, as such term is defined in Policy 1.1 of the TSXV.
The shares-for-debt conversion will significantly strengthen Augen Gold's financial position by removing a major liability, and represents a positive opportunity that will enable the Company to focus on raising the capital it requires in order to pursue its exploration programme and meet its legal obligations.
About Augen Gold
Augen Gold is a gold exploration company with 24,042 hectares of mining claims over a 45-kilometre length located in Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine and directly adjacent to the Young Shannon gold deposit. The Company's objective is to aggressively explore the Jerome mine in order to determine the gold potential along strike on the contiguous mining claims, and to continue to expand its property portfolio with highly prospective mineral assets.
For more information on Augen Gold, visit our website at www.augengold.ca The Company's documents may be accessed 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.