Wellington, New Zealand, March 18, 2010
GLASS EARTH ANNOUNCES NEW PLACER GOLD PARTNER,
APPROVAL OF 5:1 SHARE CONSOLIDATION
Glass Earth Gold Limited (TSX-V: 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.
2
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.V: GEL) and the New Zealand Alternative Stock Exchange
(NZAX: GEL).
For additional information on the company, please contact:
• Simon Henderson, President and Chief Executive Officer, at +64 4 903 4980 or
info@glassearthlimited.com;
• Jeanny So, Account Manager, CHF Investor Relations, at +1 416 868 1079 or
jeanny@chfir.com
• 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.
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.