Augustine Ventures Inc.

Augustine Ventures Inc.

October 25, 2011 14:53 ET

Augustine Ventures Adopts a Shareholder Rights Plan

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2011) - Augustine Ventures Inc. (CNSX:WAW) ("Augustine" or the "Company") reports that the Board of Directors has adopted a shareholder rights plan ("Rights Plan") effective October 25, 2011. The Rights Plan is designed to provide adequate time for shareholders of Augustine and the Board of Directors to consider and evaluate any unsolicited take-over bid for the Company; to provide the Board adequate time to identify, develop and negotiate alternatives for maximizing shareholder value; to provide shareholders with an equal opportunity to participate in any take-over bid; to encourage the fair treatment of shareholders in the event of any bids for Augustine; and, to ensure that any proposed transaction is in the best interest of Augustine' shareholders. Augustine is not aware of any pending or threatened take-over bid for the Company.

The Rights Plan is effective immediately subject to ratification by Augustine shareholders, which will be sought at the next annual meeting of Shareholders (the "Meeting").

Under the terms of the Rights Plan, one right (a "Right") will be issued by Augustine in respect of each outstanding common share of the Company at the close of business today and in respect of each Augustine common share issued hereafter (subject to the terms of the Rights Plan). The Rights issued under the Rights Plan become exercisable only if a person acquires or announces its intention to acquire 20% or more of the common shares of the Company without complying with the "permitted bid" provisions of the Rights Plan or without the approval of the Board of Directors of the Company.

Should such an acquisition occur, Rights holders (other than the acquiring person or related persons) can purchase common shares of the Company at a substantial discount to the prevailing market price (as defined in the Rights Plan) at the time the Rights become exercisable.

"Permitted bids" under the Rights Plan must be made to all holders of Augustine common shares and must be open for acceptance for a minimum of 60 days. If, at the end of 60 days, at least 50% of the outstanding common shares other than those owned by the offer or and certain related parties have been tendered and not withdrawn, the bidder may take-up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender to the bid.

Although effective as of today, the Rights Plan is subject to ratification by Augustine shareholders at the Meeting and, if ratified, the Rights Plan must be confirmed at every third annual meeting thereafter. If not ratified at the Meeting, the Rights Plan and all of the Rights outstanding at that time will terminate.

About Augustine Ventures Inc.

Augustine Ventures Inc. is a junior gold exploration company which has secured an option to earn a 60% interest in the Wawa Gold Project which encompasses 2,345 hectares in McMurray Township, southeast of the town of Wawa. Over 95 percent of the property consists of leases and/or patents for both mineral and surface rights that are easily accessible. The property has a known depth extension to 600 meters, a history of past production from the known deposits and a large number of untested but documented gold occurrences on the property.

Augustine has recently acquired a 100% undivided interest in an additional 161 claim units totalling 2,576 hectares adjacent to its Wawa Gold Project known as the Oakley Lake Property situated in McMurray and Naveau Townships near Wawa, Ontario.

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