Augmitto withdraws prospectus offering

Poor market conditions have forced Augmitto Explorations (TSE) to withdraw its prospectus offering in Quebec and Ontario, a move which could push back the planned opening in April of its Beauchastel gold mine near Rouyn-Noranda, Que. President Norman Brewster said the company recently completed a review of its budget and timing for development of the Beauchastel project; it is estimated capital costs have risen about $6 million as of mid-December. (The company was previously reporting a capital budget of $22 million.)

Earlier this year, Augmitto arranged a gold loan worth up to $10 million with Rothschild Australia; the company also raised $8 million through private placements. Brewster said Rothschild has indicated further money advances are conditional on Augmitto raising the funds to cover the projected budget deficit.

Brewster said his company is pursuing financing alternatives for completion of the Beauchastel production facilities. Proven reserves (including a 15% dilution factor) at the property stand at 202,348 tons grading 0.23 oz gold per ton, with probable reserves of 1.3 million tons grading 0.15 oz. Possible and inferred reserves are estimated to be 1.7 million tons at 0.17 oz.