Pinetree Capital Ltd. (TSX:PNP) signed a definitive agreement to acquire an additional 10.82% stake in Augusta Industries Inc. (TSXV:AAO) for CAD 1 million on December 17, 2012. Under the terms of the transaction, Augusta Industries will issue an aggregate of 20 million units to Pinetree. Each Unit is comprised of one common share and one-third of one common share purchase warrant.

Each whole warrant entitles the holder thereof to acquire one common share at an exercise price of CAD 0.10 per share for a period of two years from the date of issuance. As consideration, Pinetree has agreed to issue an aggregate of 1.11 million common shares in the capital of Pinetree. The securities issued in connection with the transaction will be subject to a four month hold period.

The transaction is subject to approval of shareholders of Augusta Industries and receipt of all applicable regulatory approvals. The transaction is expected to close by January 31, 2013.