NEWS: Augen Gold to Joint Venture With SanatanaAugen Gold to Joint Venture With Sanatana
Augen Gold Corp. ("Augen Gold" or the"Company") (TSX VENTURE:GLD) announced today that it has entered into aletter of intent (LOI) effective December 14, 2010, with Vancouver-basedSanatana Diamonds Inc. (TSX VENTURE:STA) a well-managed emergingresource company, for a proposed Option and Joint Venture Agreement("the Agreement") to acquire up to 51% undivided interest in the rightsto certain mineral claims in Chester, Yeo, Neville, and Benneweistownships in Ontario. These claims exclude those depicted in the mapentitled "WCote with Planned Drill Holes" (posted on Augen Gold'swebsite, www.augengold.ca) where a current 18 DDH program is underway,although Sanatana has been granted a first right of refusal on theseclaims should GLD decide to enter into a joint venture on them.
"The main claims in this LOI are in areas that have exellentpotential, but are unlikely to be a major focus for Augen Gold for thenext few years," said J. David Mason, president and CEO of Augen Gold."In our opinion, this is an excellent agreement for GLD and will preventunnecessary dilution while supporting the company's intense focus onits four main targets.
Sanatana has agreed to spend $5 million on these claims over thenext three years and provide cash plus 5,000,000 shares in Sanatana aspayment for the option. The proposed Agreement is subject to, amongother things, the completion of satisfactory due diligence, thenegotiation and execution of a definitive agreement, approval of theboards of both parties, and approval of the TSX-V; the parties haveagreed to execute this definitive agreement on or before February 15,2011. The proposed Agreement is an arm's-length transaction and is notexpected to require shareholder ratification.
Augen Gold has been successful in raising approximately $9.1million in 2010 and is focused on achieving its exploration milestones.Since inception in October 2006, the Company has raised more than $20million for the South Swayze Project.
About Sanatana Diamonds Inc.
Sanatana Diamonds Inc. is an exploration stage company withprojects in the North West Territories and the Yukon. The Company has anexperienced management team and Board of Directors. Sanatana Diamonds,headquartered in Vancouver, is listed on the TSX Venture Exchange (TSXVENTURE:STA).
About Augen Gold
Augen Gold is a gold exploration company with 23,685 hectares ofstaked and patented mining claims in the Southern Swayze GreenstoneBelt, including the formerly producing Jerome Gold Mine. The claimscover a 45-kilometre long section of the Ridout Deformation Zone,believed to be the western extension of the Kirkland Lake/Larder LakeBreak. The geological setting is comparable to the major gold camps ofTimmins and Kirkland Lake, and the claims contain numerous gold showingsthat have received very little historical exploration. Augen Gold isthe first company to have assembled such a coherent ground position.Augen Gold has performed a detailed airborne geophysical survey over thewhole area, and its sampling program has confirmed the historicallyreported gold values. The correlation of many gold showings withgeophysical features indicates excellent potential for the discovery ofadditional deposits. The Company's objectives are to aggressivelyexplore the gold showings that correlate with geophysical anomalies, continue resourcedefinition at the Jerome Mine, and to expand its property portfolio withhighly prospective mineral assets.
For more information on the South Swayze Project, please refer tothe Company's NI 43-101 compliant technical report "Amended andRestated Technical Report on the Augen Gold Corp. Claims, PorcupineMining Division, District of Sudbury, Ontario, Canada" (effective April8, 2008 available on the Company's profile at www.sedar.com).
For more information on Augen Gold, visit our website at www.augengold.ca.
The Company's documents may be accessed at www.sedar.com.
This news release contains forward-looking statements. Thesestatements are based on information currently available to the Companyand the Company provides no assurance that actual results will meetmanagement's expectations. Forward-looking statements include estimatesand statements that describe the Company's future plans, objectives orgoals, including words to the effect that the Company or managementexpects a stated condition or result to occur. Forward-lookingstatements 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 addressfuture events and conditions, by their very nature they involve inherentrisks and uncertainties. Actual results relating to, among otherthings, results of exploration, project development, reclamation andcapital costs of the Company's mineral properties, and the Company'sfinancial condition and prospects, could differ materially from those currently anticipatedin such statements for many reasons such as: changes in general economicconditions and conditions in the financial markets; changes in demandand prices for minerals; litigation, legislative, environmental andother judicial, regulatory, political and competitive developments;technological and operational difficulties encountered in connectionwith the activities of the Company; and other matters discussed in thisnews release. This list is not exhaustive of the factors that may affectany of the Company's forward-looking statements. These and otherfactors should be considered carefully and readers should not placeundue reliance on the Company's forward-looking statements. The Companydoes not undertake to update any forward-looking statement that may bemade from time to time by the Company or on its behalf, except inaccordance with applicable securities laws.
Shares outstanding: 102,783,064
SOURCE: Augen Gold Corp.
Augen Gold Corp.
J. David Mason
Chief Executive Officer and Director
416-915-4231
dmason@augengold.ca