Purecore Metals Inc. press release
Augen Announces Augen Resource 2 Balance Fund NAV Recalculation
CSE - Canadian National Stock Exchange ยท Canada
Shares outstanding: 28,857,282
TORONTO, June 13 /CNW/ - Augen Capital Corp. ("Augen") (TSX-V: AUG) announces that the net asset value ("NAV") was not reported accurately for Augen Resource 2 Balance Fund ("Augen R2B") as a result of tax liabilities arising from it not qualifying as a mutual fund corporation as defined under the Federal Income Tax Act since its inception in September 2002. Four prior Augen limited partnerships, prior to Augen Limited Partnership 2003, with net assets amounting to $1.9 million were rolled into Augen R2B since inception. As a result of incorrect valuations, the redemption NAV per unit paid to investors who redeemed their units has generally been greater than the expected recalculated NAV per unit. Augen R2B currently has fifteen remaining unitholders of a total of fifty original investors. Augen R2B will be reimbursed by Augen, the Manager of Augen R2B, for any excess management fees Augen has received as a result of incorrect valuations. Augen is currently recalculating the NAV. The impact on Augen's current financial results has not been determined but is expected to be in the range of two hundred to five hundred thousand dollars or $0.007 to $0.016 per share. It is expected that the NAV recalculation effort will be completed in the next several weeks and prior to the release of Q2 2006 results. The net assets of Augen Limited Partnership 2004-1 and Augen Limited Partnership 2003, totalling $16.7 million, were acquired by Augen Resource Strategy Fund ("Augen RSF") on May 1, 2006. Legal counsel for Augen RSF has made all the necessary elections and have confirmed that Augen RSF qualifies as a mutual fund corporation under the Federal Income Tax Act. It is anticipated that the net assets of Augen Limited Partnership 2006 and Augen Limited Partnership 2005 will be acquired by Augen RSF when liquidity is achieved. It is expected that Augen RSF will be listed on FundSERV prior to the expiry of the September 1, 2006 redemption hold period.
About Augen Capital
Based in Toronto, Augen is a merchant bank specializing in the financing of primarily early stage resource companies and is an industry leader in tax-advantaged flow-through investments in Canada's resource sector. Our Managed Products division earns fees related to the limited partnerships and mutual funds including setup, due diligence, and annual and performance fees. Our Merchant Banking division provides financing and strategic management support to resource investee companies and strives to maximize net gains realized on its core investment portfolio of emerging resource stocks. Augen has over $30 million in assets under administration, including its merchant banking investment portfolio, resource flow-through limited partnerships, and Augen Resource Strategy Fund.
For more information on Augen Capital, visit our website at www.augencc.com The company'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. 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: 00021296E