I did a little bit of digging on this situation. IMO, I dont beleive we will get into this type of scenario, mainly because of our loyal die hard shareholders. Some of us beleive that 60-70 % of SLI shares are in safe hands, in comparrison to 42% of Augens shares are held by the likes of Sprott, Joe Dwek and a couple other firms. The funds that hold this 42% most likely got the bulk of Augens shares from previous financing or PP,S. Thats why I don,t like the institutions holding big amount of shares in a company, the cotrol is too big, IMO. In comparrison to us, I dont beleive institutions have any significant holdings in us, ie; 5-10%, and thats a maybe, because the only way they could have got them, was to buy on the open market, and when they reached 10% they had to publicly disclose it, if they did.

So apparently, Trelawny went to Augens biggest shareholders and got a lock-up agreement that amounted to 42% of the vote. This is a huge portion of the vote, IMO. Trelawny wants 67% of the votes in this situation and that will give them controlling interest and the other 33% of the votes wont matter (usually). The 33% will have the choice to tender their shares to the offer or stand to see them depreciate to very little if the vote is successful. So, if Trelawny gets the 67%, it would be in the best interest for the rest of the shares to be tendered. A little on that in this link;

http://www.investopedia.com/ask/answers/06/rejecttenderofferpublictoprivate.asp

They will keep this offer open for 50 days, and anyone wishing to tend their shares have to do it in that time. Augen will suggest that the rest of its shareholders stand and fight (most likely), but if 67% of the votes get tendered, its pretty well over. I am not sure if Augen has a shareholders right plan in place or not, if they do, it will be interesting to see if they will try the full effect of it, I doubt it.

Here are some details of the offer;

over bid circular to be filed with securities regulatory authorities and mailed

to Augen shareholders. Trelawney will request a shareholders’ list from Augen today and expects to mail the offer and take

over bid

circular to Augen shareholders as soon as practical upon receipt of this list. The Offer will be open for acceptance for 50 days

following the commencement of the Offer.

The Offer will be subject to certain conditions of completion, including receipt of all necessary regulatory approvals, absence of

material adverse changes and not less than 66

% of the Augen Shares, calculated on a fully diluted basis, being deposited under the

Offer and not withdrawn. Once the two

thirds percentage acceptance level is met, Trelawney intends, but is not required, to take

steps to acquire all remaining Augen Shares in accordance with applicable law.

http://www.trelawneymining.com/pr/2011/Project%20Swanky-Announce-FINAL.pdf

Here is where its important for shareholders to make sure they are getting their proxies, if there ever comes a time like this for us, you will want every vote to be counted. Not only that, but you will need your proxies to vote for a tender if accepted.

IMO