Augustine Announces $121,500 CDN and $176,000 US Interim Private Placement Financing and Debt Conversion
Toronto, Ontario--(Newsfile Corp. - February 9, 2015) - Augustine Ventures Inc. (CSE: WAW) ("Augustine" or the "Company") is pleased to announce that it has closed on an offering 1,500,000 flow-through units ("FT Units") at the price of $0.05 per FT Unit and an aggregate of 930,000 non-flow-through units ("NFT Units) at the price of $0.05 per NFT Unit for gross proceeds of $121,500 on February 9, 2015. The offering was completed pursuant to the financing arrangement with IBK Capital Corp. ("IBK Capital"), under which IBK has agreed to conduct a best efforts private placement financing (the "Financing") to raise up to $700,000 for Augustine (for further information please see Augustine's news release dated December 12, 2014).
In addition, the Company issued and aggregate of 3,911,110 NFT Units at the price of $0.045 US per NFT Unit for gross proceeds of $176,000 US.
The details of the financing are as follows:
| a) | Each Flow-Through Unit consists of one common share of Augustine issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and one common share purchase warrant (a "Warrant"). Each Warrant allows the holder to acquire one non-flow-through common share of Augustine (a "Warrant Share") at an exercise price of $0.05 per Warrant Share at any time on or before February 9, 2019; |
| b) | Each NFT unit consists of one common share and one Warrant. Each Warrant allows the holder thereof to a Warrant Share at an exercise price of $0.05 CDN/$0.045 US per Warrant Share at any time on or before February 9, 2019. |
In connection with the Financing, Augustine has paid to IBK Capital a cash commission of 8% of the funds raised and broker warrants in the amount of 8% of the FT Units and NFT Units, excluding the NFT Units issued to the US subscribers, issued through this offering. Each broker warrant allows the holder to acquire one NFT Unit of Augustine at an exercise price of $0.05 per NFT Unit at any time on or before February 9, 2019.
The proceeds from this financing will be used for exploration purposes at Augustine's Wawa Gold Project and for working capital purposes.
In addition, Augustine would like to announce that it has issued an aggregate of 7,009,428 units (the "Debt Units") to certain creditors of the Company in exchange for the cancellation of an aggregate $350,471 in debt owing to the creditors. The Debt Units are being issued at a deemed price of $0.05 per Debt Unit. Some of the creditors are officers and/or directors of the Company.
Each Debt Unit consists of one common share a common share purchase warrant (the "Debt Warrant"). Each Debt Warrant allows the holder thereof to acquire one common share at an exercise price of $0.10 per common share at any time on or before February 9, 2019
All securities issued pursuant to the offering and the debt conversion are subject to a statutory four (4) month hold period expiring on June 10, 2015.
About Augustine Ventures Inc.
Augustine Ventures Inc. is a junior gold exploration company which has an option to earn up to a 75% interest on the Wawa Gold Project which encompasses 2,426 hectares in McMurray Township, southeast of the Town of Wawa, Ontario. Over 95 percent of the property consists of leases and/or patents for both mineral and surface rights that are easily accessible. The property has a gold resource of 1.1 million ounces at 1.5 g/t hosted within 22.4 million tonnes* with known lateral extension and depth extension to 600 meters, a history of past production from the known vein deposits and a large number of untested but documented gold occurrences. Augustine has also acquired a 100% undivided interest in an additional 182 claim units known as the Oakley Lake Property totalling 2,912 hectares contiguous to its Wawa Gold Project.
*The Mineral Resource is disclosed in the NI 43-101 compliant technical report titled "Amended Technical Review and Mineral Resource Estimate for the Jubilee-Surluga Property, near Wawa, Ontario, Canada for Augustine Ventures Inc." dated October 12, 2012 and prepared by Clifford J. Duke, P. Eng., Senior Associate Geological Engineer of Watts, Griffis and McOuat, Consulting Geologists and Engineers. The report is available on www.SEDAR.com under Augustine's profile.
For additional information contact:
Augustine Ventures Inc.
Robert (Bob) Dodds, President & CEO
Tel: (416) 363 2528
Fax 1-(866)-288-3582
Email: bdodds@augustineventures.com
This news release may contain forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent filings with Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.