Augen Gold PP fully subscribedPrivate Placement closed for Augen Gold raising $1.030,000 - good news
RE when I roughly calculated the Augen book value based on financial I came up wih about .16 book value.including tax loss carry forwards - so from a book value Augen is a bargain but revenue needs to be increased as losses will erode book value over time without new flowthrough issues earning them revenue.
Augen Gold Corp. Announces $715,000 Second Closing of Non-Brokered Private Placement for Total Proceeds Raised of $1,030,000 and Revised Total Non-Brokered Offering of $1,500,000
Last Update: 12/16/2009 12:38:00 PM
TORONTO, Dec. 16, 2009 (Canada NewsWire via COMTEX) -- Shares outstanding: 35,979,835
Augen Gold Corp. ("Augen Gold" or "the Company") (GLD) is pleased to announce completion of a non-brokered private placement of $715,000 through the sale of 7,150,000 Units at
.10 per Unit, subject to regulatory approval and closing. On October 29, 2009, Augen Gold announced the first closing of $315,000 of a proposed total non-brokered financing of $1,000,000. With the second closing of $715,000, the total financing completed to date is $1,030,000, and Augen Gold announces that it will continue with the financing on the same terms and proposes to increase the non-brokered financing to total gross proceeds of $1,500,000.
Pursuant to the these financings, each Unit consists of one common share and one flow-through common share purchase warrant ("Flow-Through Warrant"). Each full Flow-Through Warrant entitles the holder to acquire a common share of Augen Gold on a flow-through basis at a price of
.20 for a period of 5 years from the closing date, provided that after two years have elapsed from the closing date, and upon the closing trading price of Augen Gold's common shares being at or above the price of
.70 for 10 consecutive trading days, the Flow-Through Warrants shall expire on the earlier of: (i) the expiry date of such Flow-Through Warrants, or (ii) such date which is 30 days after the first business day following the date Augen Gold provides written notice to the holders of Flow-Through Warrants that the Flow-Through Warrants will expire at the end of such 30-day period.
Proceeds of the financing will be used to fund exploration and working capital. All securities issued in conjunction with the offering will be subject to a hold period, which expires four months after closing. On this second closing finders were paid a cash commission of $22,050 and were issued 220,500 broker warrants, each broker warrant entitling the holder to acquire one Series B Unit for a period of 5 years at an exercise price of
.10 per Unit.
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