Augen Gold Corp.
TSX VENTURE : GLD

Augen Gold Corp.

September 21, 2010 12:50 ET

Augen Gold Corp. on the Way to Unlocking Shareholder Value

Independent Proxy Advisory Firm Recommends That Augen Gold Shareholders Vote Yellow Proxy in Favor of Incumbent Management

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2010) - Augen Gold Corp. (TSX VENTURE:GLD) announced today that an independent proxy advisory firm has recommended Augen Gold shareholders vote "FOR" the company's proposed Board of Directors, approve the appointment of auditors, and re-approve the company's stock option plan. This will enable incumbent management to continue its drive to develop its South Swayze property and build value for shareholders.

ISS Proxy Advisory Services Canada has issued a report outlining the benefits for shareholders to support incumbent management at Augen Gold.

The report applauds Augen Gold Corp's recent share price performance, and acknowledges that Augen Gold is "well financed" and on the path to unlocking shareholder value. The report concludes that incumbent management has carried out a reasonable plan to create shareholder value. ISS Proxy Services found there have been no major strategic missteps other than CEE, which cannot be solely attributed to incumbent management. 

"We're pleased that ISS Proxy Advisory Services concur that our plan for Augen Gold will create considerable value for our shareholders. Augen Gold shareholders will receive a meaningful premium and return as we move forward with the development and exploration of the Jerome Mine," said David Mason, President and Chief Executive Officer of Augen Gold Corp.

The report states that wholesale board change is NOT warranted, and that minority dissidents have NOT demonstrated they are better able to create shareholder value.

Augen Gold has been successful in raising approximately $4.9 million in financings, in 2Q10, comprised of $1.5 million in flow through, AS WELL AS $3.4 million in hard dollars, and is now well financed to achieve its next exploration milestones. Since inception in October 2006, the Company has raised a total of approximately $16 million for the South Swayze Project.

This week Augen Gold provided a promising update of gold exploration activity at Opeepeesway Lake within its 100% owned South Swayze property. Initial assay results for the testing at Opeepeesway are positive for gold.

Augen Gold is currently drill testing three lake sediment Soil Gas Hydrocarbons ("SGH") anomalies under the east arm of Opeepeesway Lake using a barge as a drilling platform. Drilling commenced during the last week of July and six holes totaling 1,100 metres have been completed to date.

Augen Gold Corp. will hold a special meeting of shareholders on September 30, 2010 to vote on proposed Board candidates, approve the appointment of auditors, and re-approve stock option plan. 

Shareholders that have any questions or need assistance in voting please contact Laurel Hill Advisory Group, the Company's proxy solicitation agent, at:

Toll Free: 1.877.304.0211

Collect: 416.304.0211

Email: assistance@laurelhill.com

Contact Information

  • Augen Gold Corp.
    J. David Mason
    Chief Executive Officer and Director
    416-915-4231 reception and voice mail
    dmason@augengold.ca