Merchant banking
Augen's merchant banking portfolio consists primarily of listed Canadian resource companies whose principal business is resource exploration and development. From time to time Augen may investment in private companies. Augen focuses on a small number transactions in which it has significant influence or over which it has control. Two of Augen’s significant equity holdings in the Merchant Banking portfolio are described below:
Augen Gold Corp.
In 2006, Augen Capital Corp. founded Augen Gold Corp. (“AGC”). In June 2008, AGC completed its initial public offering of equity securities raising approximately $4.33 million. AGC is a junior gold exploration company which holds 63 patented and 143 unpatented claims covering 24,581 hectares (the “Property”) over a 45 kilometre length located in the southern Swayze Greenstone Belt, including the formerly producing Jerome Gold Mine. The Property is directly adjacent to the Young Shannon gold deposit.
Augen currently owns approximately 23% of the issued and outstanding common shares of AGC. Some examples of Augen Capital Corp. initiatives in AGC are as follows: On October 29, 2009, AGC announced the first close of a non-brokered private placement financing raising gross proceeds of $315,000; On December 16, 2009, AGC announced the second close of a non-brokered private placement financing raising gross proceeds of $715,000; On January 17, 2010, AGC announced the initial results of its winter exploration program; On January 29, 2010, AGC announced the third and final close of a non-brokered private placement financing raising gross proceeds of $715,000, for aggregate proceeds of $1,500,000. The private placement was oversubscribed. AGC’s continuous disclosure documents, including its press releases and quarterly and annual reports are available through its filings with the securities regulatory authorities in Canada at www.sedar.com or AGC’s website at www.augengold.ca.
AGC’s objective is to explore the Property in order to confirm existing and identify additional National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant gold resources, to explore the gold potential along strike on the contiguous mining claims and to continue to expand its property portfolio with prospective mineral assets.
Energy Fuels Inc.
Energy Fuels Inc. ("Energy Fuels") is a Toronto based mineral exploration and development company. The principal business activity of Energy Fuels is mineral exploration, development and mining of uranium and vanadium properties in the states of Colorado, Utah and Arizona.
Augen was instrumental in the success of Energy Fuels by implementing a strategy to recruit a strong management team with uranium expertise, successfully raising seed financing, and assisting with the acquisitions of highly promising uranium properties.