CORRECTION FROM SOURCE: Glass Earth Gold to Purchase Joint Venture Partner to Consolidate Placer Gold Production
March 15 2012 - 6:37PM
Marketwired Canada
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.
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