Augen Gold Corp.

Augen Gold Corp.

July 13, 2010 15:27 ET

CORRECTION FROM SOURCE: Augen Gold Corp. (TSX VENTURE:GLD) Shareholder Meeting Postponed to July 23, 2010

TORONTO, ONTARIO--(Marketwire - July 13, 2010) - A correction from source is being issued with respect to the release that was disseminated on July 13, 2010 at 1:02 PM ET. The previous version included an incorrect stock exchange symbol in the first paragraph. The exchange symbol should correctly read (TSX VENTURE:GLD). The complete and corrected release follows.

Augen Gold Corp. (TSX VENTURE:GLD) ("Augen Gold" or the "Company") announces that it has postponed the annual and special meeting of its shareholders (the "Shareholder Meeting") planned for 4 p.m. (Toronto time), July 13, 2010. The Shareholder Meeting has been rescheduled to Friday, July 23, 2010 at 10:00 a.m. (Toronto time) at the Toronto Board of Trade. The proxy voting cut-off for the Shareholder Meeting will now be 10:00 a.m. (Toronto time) on Wednesday, July 21, 2010. The record date for the Shareholder Meeting will continue to be May 24, 2010. Shareholders who have already submitted proxies and do not wish to change their vote do not need to resubmit them as they will continue to be valid in connection with the postponed meeting scheduled for Friday, July 23, 2010.

Three of the five directors of the Company (the remaining two being absent but invited to a meeting this morning) concluded the postponement was necessary to protect the interests of shareholders of the Company, particularly the interests of minority shareholders. Over the past few days the Company has learned that a small number of shareholders, representing 39% of the issued and outstanding shares of the Company, have completed and submitted proxies in blank, many naming as proxy an outgoing director of the Company (the "Dissident Shareholders"). The intentions of the Dissident Shareholders remain unclear, however, the Company is taking steps to determine what those intentions are in order to fully advise shareholders of the choices before them. The situation has been exacerbated by the fact the board has learned that certain shareholders have not yet received their proxy forms from registered holders.

The Company has received proxies representing approximately 36% of the issued and outstanding shares of the Company, with 100% of them voting "FOR" election of the directors proposed in the management information circular. It is typical that many shareholders do not vote where there is only ordinary business presented and that some shareholders dispose of their proxies upon receipt. The Company is concerned that there is now apparently an organized minority acting pursuant to a undisclosed agenda that may be contrary to the interests of the other 61% of shareholders in the Company. As a result, the Company will be providing additional time for shareholders to vote, and will also be mailing proxies to shareholders so that they may submit a proxy in the event that they have not done so to this point.

The directors of the Company are concerned that the Dissident Shareholders seek exclusive control of Augen Gold despite representing just 39% of the shares outstanding and in particular are concerned that they:

  • Appear to be acting to elect an unidentified slate of nominees to the board about whom the majority of shareholders know nothing;

  • Have described no strategic plan of the Company; and

  • Appear to seek control of the Company without payment of a change of control premium to the current shareholder of Augen Gold.

About Augen Gold

Augen Gold is a gold exploration company with 23,877 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 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.

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

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. 

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.

Contact Information

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