Glass Earth Gold Limited (TSX VENTURE:GEL - News; NZAX:GEL)
("Glass Earth") today announced the completion of the second and
third tranches of a previously announced Private Placement financing for
gross proceeds of C$1,061,600. In addition, Glass Earth has paid certain
finders fees in connection with the completion of the C$3,004,890 first
tranche of the Private Placement announced December 28, 2010.
Second and Third Tranches
The second tranche consisted of
3,255,000 Units at a price of C$0.30 per Unit. 1,760,000 Units were sold on a
brokered basis through D&D Securities Inc. (the "Agent'") and
the balance on a non-brokered basis. The third tranche consisted of 283,666
Units at a price of C$0.30 per Unit. 166,666 Units were sold on a brokered
basis through the Agent and the balance on a non-brokered basis.
Each Unit consists of one common share
and one half of a common share purchase Warrant. Each whole Warrant entitles
the holder to purchase one common share at a price of C$0.50 per share,
exercisable for a period of 24 months from the date of issuance.
Glass Earth paid the Agent and members
of its selling group, as well as a finder in respect of the non-brokered
portion, a cash commission of 8% of the funds raised in the second and third
tranches. In addition, Glass Earth issued to the Agent, its selling group and
finder a total of 283,093 non-transferable Warrants ("Compensation
Warrants") to acquire Units in the amount that is equal to 8% of the
number of Units sold.
Each of the Compensation Warrants
entitles the holder to acquire one Unit of Glass Earth at a price of $0.50
per Unit for a period of 24 months from the date of issuance. The Units underlying
the Compensation Warrants have the same terms and conditions as the Units
sold pursuant to the Private Placement.
All of the Units and Compensation
Warrants issued pursuant to the second tranche are subject to a four-month
hold period expiring May 7, 2011 with the third tranche's hold period
expiring May 15, 2011.
First Tranche Finders Fees
Glass Earth also announced that it has
paid to finders, in respect of the first tranche closing announced December
28, 2010, a cash commission of 8% of the funds raised through the efforts of
finders. In addition, Glass Earth issued to the first tranche finders a total
of 534,640 Compensation Warrants. Each Compensation Warrant has the same
terms and conditions as the Units issued pursuant to the second and third tranche
The Compensation Warrants issued
pursuant to the first tranche are subject to a four-month hold period
expiring April 24, 2011.
The Private Placement has now been fully
completed and the net proceeds from the C$4,066,490 will be used for mineral
exploration and general working capital purposes.
About Glass Earth Gold Limited
Glass Earth is one of the largest New
Zealand-based gold exploration companies exploring a land position of over
2,800 square kilometres in the North and South Islands.
In the North Island, exploration efforts
are focused on large epithermal gold systems in the Hauraki/Central Volcanic
Region. This Region is host to the 10 million ounce Martha Gold Mine,
Hauraki Region - Glass Earth occupies a
significant ground position around the Waihi/Martha Gold Mine; The
Newmont-Glass Earth Waihi West JV (65/35) is currently being explored and
managed by Newmont. The Newmont-Glass Earth Hauraki JV (65/35) has recently
announced significant results on its WKP - West Project (August 25th press
WKP West - Follow-up drilling campaigns
planned for the last quarter 2010 will now commence in early 2011, following
delays in site access and drill equipment scheduling.
Central Volcanic Region - Glass Earth
has defined several significant epithermal gold targets in this region,
drilling is currently underway on the Muirs Reef project (Mamaku district)
where the strike and depth potential of the Muirs Massey Reefs are being
tested, as well as the new East and West vein systems interpreted from 3D
resistivity surveying. Two rigs have been drilling, with results anticipated
in early 2011.
In the South Island, exploration efforts
are focused on the Otago Region for mesothermal "Macraes-style"
gold targets and alluvial gold.
Otago Region - Field programmes to
commence the drilling of highly ranked Serpentine and Game Hen gold targets
is planned for early 2011.
Two alluvial mining operations continue
into the 2011 year, coupled with an acceleration of alluvial exploration and
resource definition; Glass Earth / Dunstan Mining (placer mining 50/50
partner) plan to treble gold output in 2011.
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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.
Glass Earth Limited
President and Chief Executive Officer
+64 4 903 4980