Glass Earth Announces New Placer Gold Partner, Approval of 5:1 Share Consolidation
March 18 2010 - 3:15PM
Marketwired
Glass Earth Gold Limited (TSX VENTURE: GEL)(NZAX: GEL) ("Glass
Earth" or the "Company") announced today that it has signed a
Letter of Intent with Placer Gold International Corp. to develop
two placer targets in central Otago, New Zealand; and the TSX
Venture Exchange Inc. has approved the consolidation of Glass
Earth's issued and outstanding shares on the basis of a five (5)
pre-Consolidation shares to one (1) post-Consolidation share ratio.
Placer Gold Venture Partner
Glass Earth previously announced on February 24, that revenue
from its placer gold mining operations could significantly
contribute to corporate operating expenses. Glass Earth, along with
its partner, Dunstan Mining Limited, has since signed a Letter of
Intent to explore and develop two new placer operations. These
operations could significantly increase placer gold output in an
area that historically produced in excess of one million ounces.
The venture is based on the following terms:
1. Placer Gold International Corp. ("Placer Gold") will fund development
work within a range of NZ$150,000 to NZ$250,000 (circa C$110,000 -
C$180,000) for each of the two targets. Placer Gold would thereby earn
up to 30% equity in a target.
2. Placer Gold may elect to fund NZ$500,000 (circa C$365,000) of the plant
and equipment required for mining activities on a target, in order to
earn another 20% equity in that target.
3. Placer Gold has an 18 month option to fund a third target on the same
terms and conditions.
4. Should Placer Gold fund the equipment per cl 2, net revenue will
initially be returned on a monthly basis in the ratio of 75% to Placer
Gold and 25% to Glass Earth/Dunstan until the initial capital funding of
NZ$500,000 has been recouped by Placer Gold.
"This transaction will accelerate our ability to assess more
placer potential on our permits while maintaining funding for the
core activity of hard rock gold exploration. Cash generated from
placer mining operations means more funding will go directly into
the ground - what every exploration manager and investor wants,"
commented Simon Henderson, CEO of Glass Earth.
Share Consolidation
The common shares of Glass Earth will be traded on a
post-consolidation basis on the TSX-V starting March 18, 2009.
Trading on the NZAX on a post-consolidation basis will commence
March 19, 2010 (NZ time). Upon completion of the share
consolidation, a total of 32,684,526 common shares will be
outstanding.
Qualified Persons
Glass Earth's exploration programmes are carried out under the
supervision of Glass Earth's President and CEO, Simon Henderson,
M.Sc, M.AUSIMM, F.SEG. Mr. Henderson meets the qualified person
requirements (as defined by National Instrument 43-101) with more
than 30 years of experience in the gold mining and exploration
industry.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold
exploration companies exploring a land position of over 12,000 km2
in the North and South Islands. With its main office in Wellington,
New Zealand, Glass Earth Gold Limited is listed on the TSX Venture
Exchange (TSX VENTURE: GEL) and the New Zealand Alternative Stock
Exchange (NZAX: GEL).
For additional information on the company, please visit the
Company's website at www.glassearthgold.com.
To receive Company news via email, contact jeanny@chfir.com and
mention "Glass Earth news" in the subject line.
To view the map associated with this press release, please visit
the following link:
http://media3.marketwire.com/docs/GEL0318.jpg
Neither 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 4980 info@glassearthlimited.com
www.glassearthgold.com CHF Investor Relations Jeanny So Account
Manager +1 416 868 1079 jeanny@chfir.com
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