OreReserve Asset Management Inc.

October 04, 2010 17:47 ET

OreReserve Provides Information to Shareholders of Augen Capital

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2010) - OreReserve Asset Management Inc. ("OreReserve") would like to apprise shareholders of Augen Capital Corp. (TSX VENTURE:AUG) ("Augen Capital") of certain developments that have recently taken place in respect of Augen Capital.

OreReserve provides management, administrative and other services to Augen Capital pursuant to a management agreement dated as of March 1, 2009 (the "Management Agreement").

As disclosed by Augen Capital, following an Order of the Ontario Superior Court of Justice issued on September 27, 2010, the Board of Augen Capital is now comprised of Conor S. Bill and Stephen Johnson (the "Incumbent Directors") and the following four directors that comprised the slate of directors proposed by J. David Mason and Daniel Mason: Norman Brewster, Alan Cruickshank, Peter Miller and Michael Newman.

As further disclosed by Augen Capital, at a meeting held on September 28, 2010, the Board appointed Mr. Norman Brewster as Chairman and Mr. Alan Cruickshank as Acting President and Chief Executive Officer of Augen Capital. Previously, OreReserve provided the services of a President and Chief Executive Officer as part of its management responsibilities to Augen Capital in the person of Peter Chodos.

On September 10, 2010, the Saskatchewan Financial Services Commission ("SFSC") issued a cease trade order and registration prohibition against Mr. Cruikshank. As part of a settlement agreement dated September 2, 2010 between the Director of SFSC and Mr. Cruikshank, Mr. Cruikshank was, among other things, ordered to cease trading securities for a period of 6 months, prohibited from becoming a registrant under The Securities Act, 1988 (Saskatchewan) (the "Saskatchewan Act") for a period of not less than 6 months and ordered to pay an administrative penalty of $30,000 (the "Cease Trade Order and Registration Prohibition"). In the settlement agreement, Mr. Cruikshank admitted that he effected a wash-trade trade and other pre-arranged trades which resulted in or contributed to a misleading appearance of trading activity in, or an artificial price for securities, contrary to the provisions of the Saskatchewan Act.

The Incumbent Directors and OreReserve were not informed by Mr. Cruikshank, Mr. Brewster or anyone else of the Cease Trade Order and Registration Prohibition prior to or at the September 28th board meeting at which he was appointed Acting President and Chief Executive Officer or at the September 30th board meeting at which his appointment was ratified. In addition, the fact of the Cease Trade Order and Registration Prohibition has not been publicly disclosed by Augen Capital to its shareholders.

Recent developments at Augen Capital (including the placing of Mr. Chodos on administrative suspension) have made the performance of OreReserve's services under the Management Agreement extremely difficult. Notwithstanding this, it is OreReserve's intention to engage in discussions with Augen Capital in order to resolve these difficulties as expeditiously as possible.

Contact Information

  • OreReserve Asset Management Inc.
    Victor Koloshuk