CORRECTION FROM SOURCE: Glass Earth Gold to Purchase Joint Venture Partner to Consolidate Placer Gold Production
March 15 2012 - 6:37PM
Marketwired
This document corrects and replaces the document released at 8:00
AM EST on March 15th, 2012. In the table titled "Consideration," a
row labelled "Deferred cash (payable June 11, 2012)" has been
added. The complete and corrected news release follows.
Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass
Earth Gold" or "the Company") announces the purchase of its placer
gold production joint venture partner, Goldmines New Zealand
Limited, as well as the remaining 50% share of the joint venture's
mining operator, Dunstan Mining Limited, in regards to the placer
mining/exploration project located in Otago, New Zealand.
On 15 March 2012, the Company entered into agreements to acquire
full ownership of its placer joint venture and associated mining
equipment. The transaction involves purchasing the 50% of shares in
Dunstan Mining Limited (mining operator) that the Company did not
already own, and 100% of the shares in Goldmines New Zealand
Limited (the other 50% joint venture party).
Taking full control of placer mining activities will enable the
Company to significantly accelerate and increase production
capacity.
In 2011, the placer joint venture (then 50% Glass Earth Gold),
contributed CAD$752,000 in gross revenue and CAD$274,000 in net
revenue based on only one Gold Recovery Unit ("GRU") operating. The
Company plans to commission a further GRU in Q2 and another in
Q3.
This together with 100% ownership and increase in throughput
should enable the Company to achieve its previously articulated
production goals.
Consideration
NZ$m CAD$m
Issue of 2,188,184 shares of the Company
Cash 0.5 0.4
Deferred cash (payable June 11, 2012) 1.5 1.2
Deferred cash (payable NZ$80k/month (CAD$65/month) for 25
months commencing July 1, 2012) 2.0 1.6
----------------
Total cash: $4.0 $3.2
----------------
----------------
The transaction is subject to TSX Venture Exchange approval.
About Glass Earth Gold
Glass Earth Gold is one of New Zealand's largest gold
exploration companies, with its experienced geological team
exploring promising gold prospects across a land position of
approximately 10,000 square kilometres, in both the North and South
Islands. The Company held a net cash position of CAD$3.6 M at the
end of Q4 2011 to fund exploration progress.
In the North Island, exploration efforts are focused on large
epithermal gold systems in the Hauraki Region, host to the 10
million ounce Martha Hill mine, (Newmont Mining).
In the Hauraki Region Glass Earth Gold has identified and
developed significant ground positions around Newmont Mining's
currently active Martha gold operations at Waihi. The Newmont-Glass
Earth Gold Waihi West JV (Newmont earning in) and Hauraki JV
(65/35), including drilling at the WKP discovery, is being actively
explored and managed by Newmont in concert with Glass Earth
Gold.
Glass Earth Gold has also defined several significant epithermal
gold targets to independently explore in this region including the
Muirs Reef project. Containing a historical resource of 390,000 oz
(non NI 43-101-compliant, at 1.5 g/t Au and cut-off grade of 0.5
g/t Au), further drilling is being undertaken to prove up the
resource.
In the South Island, exploration efforts are focused on the
Otago Region, home to OceanaGold's 7 million ounce Macraes
Goldfield, for identification of mesothermal "Macraes-style" gold
targets and revenue generation through placer (alluvial) gold
production.
For more information on Glass Earth Gold, please visit
www.glassearthgold.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor New Zealand Exchange Limited has reviewed
this release and neither accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Glass Earth Gold Limited Simon Henderson President and
Chief Executive Officer +64 4 903 4980info@glassearthgold.com
www.glassearthgold.com CHF Investor Relations Jeanny So Director of
Operations +1 416 868 1079 x 225jeanny@chfir.com CHF Investor
Relations Jeremy Hill Associate Account Manager + 1 416 868 1079 x
238jeremy@chfir.com