Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

December 03, 2010 18:56 ET

Augen Gold Corp. Announces Acceleration of Warrants

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2010) - The Directors of Augen Gold Corp. ("Augen Gold" or the "Company") (TSX VENTURE:GLD) announce that they have elected to accelerate the expiry of the remaining 22,089,957 warrants ("Warrants") to purchase common shares ("Common Shares") of the Company issued in two separate tranches, on May 14, 2010 and May 20, 2010, as part of a private placement of flow-though units and units of the Company (the "Private Placement"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.25 per share. The Warrants were originally set to expire on November 14, 2011 and will now expire on January 7, 2011. If all of the Warrants are exercised, the Company will receive gross proceeds of approximately $5,522,489.25. The net proceeds of the Warrant exercises will be used to fund the Company's exploration initiatives and for working capital purposes.

Pursuant to the certificates governing the Warrants, the Company has the right to accelerate the expiry date of the Warrants in the event that the Common Shares trade at a volume weighted average price of greater than $0.40 on the TSX Venture Exchange ("TSX-V") for more than ten (10) consecutive trading days following September 15, 2010, with respect to the Warrants issued pursuant to the May 14, 2010 tranche of the Private Placement, and September 21, 2010, with respect to the Warrants issued pursuant to the May 20, 2010 tranche of the Private Placement (collectively, the "Acceleration Event"). To exercise this right, the Company must, within thirty (30) days of the Acceleration Event, elect to accelerate the expiry date of the Warrants by giving notice to the holders ("Notice") by way of a news release and formal notice of an accelerated warrant expiry, in which case the expiry date of the Warrants is accelerated to the date that is at least thirty (30) days after the first date after which the Notice is given.

This news release constitutes part of the Notice that the Acceleration Event has occurred, in that the volume weighted average closing price of the Common Shares on TSX-V has been greater than $0.40 for ten (10) or more consecutive trading days, and the Company has elected to accelerate the expiry date of the Warrants. An expiry date of January 7, 2011 was selected to allow additional time in light of year-end business holidays.

Warrant holders may exercise their rights to acquire Common Shares by duly completing and executing the exercise form attached to the warrant certificate representing the Warrants before 4:00 p.m. (Toronto time) on January 7, 2011 and surrendering the Warrant Certificate to Capital Transfer Agency Inc., Suite 1101, 105 Adelaide Street West, Toronto, Ontario, Canada M5H 1P9 (the "Warrant Agent") together with a certified cheque, money order, or bank draft in lawful money of Canada payable to Capital Transfer Agency Inc. or to the order of the Company for the aggregate exercise price for the Common Shares subscribed for.

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.

For more information on Augen Gold, visit our website at www.augengold.ca.

The Company's public documents may be accessed at www.sedar.com.

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.

Shares outstanding: 102,783,064

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.

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