Purecore Metals Inc. press release
Augen announces Exchange Offer Liquidity Transaction for LP 2003
CSE - Canadian National Stock Exchange ยท Canada
TORONTO, Nov. 8 /CNW/ - Augen Capital Corp. (the "Augen") (TSX-V: AUG) is pleased to announce that Augen Resource 2 Balance Fund Inc. ("R2B"), a private mutual fund corporation, has proposed a tax-deferred offer to acquire all the units of Augen Limited Partnership 2003 ("LP 2003"), as at valuation date October 31, 2005. The proposed transaction is subject to unitholder approval. The LP 2003 Net Asset Value ("NAV") per unit as at October 31, 2005 is $64.86 and is subject to independent valuation review yet to be conducted by R2B. Factoring in a 100% investment tax deduction, a federal tax credit of up to 15%, and varying provincial credits, the after-tax or break-even NAV for an Ontario resident is approximately $61 per unit. This translates into cumulative after-tax investment performance of 6.3% since the final close of partnership subscriptions in December 2003. The exchange value is yet to be determined however based on a NAV per unit of $9.07 as at September 30, 2005, unitholders would receive 7.15 units in R2B for every unit held in LP 2003. Unitholders in LP 2003 who exchange into units of R2B will be permitted to redeem, subject to certain conditions including liquidity of R2B, on March 31st, 2006. It is expected that R2B will increase the NAV calculation frequency to monthly as part of this proposed exchange offer. Alternatively, unitholders in LP 2003 electing to invest in Augen Limited Partnership 2005 ("LP 2005") will be permitted to redeem on closing of the proposed R2B exchange offer, subject to certain conditions including a maximum of $3,000,000 available for reinvestment in LP 2005, which may be increased at the discretion of the General Partner of LP 2005. The final close of Augen LP 2005 is November 30th, 2005 and the maximum offering is $15,000,000. The exchange offer of LP 2003 by R2B is scheduled to close in December 2005 and no later than January 2006. Augen Limited Partnership 2004-1 is among the top performing flow-through products in the industry with a September 30, 2005 NAV per unit of $110. Factoring in a break-even NAV of $63 per unit for an Ontario resident, this translates into cumulative after-tax investment performance of 74.6% to date.
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, including $16 million raised since 2003. 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.
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.
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