I've just noticed the change in the TSX news release. There was a line missing from the cash allocation for the deal as first posted. In all, NZ$4mill in cash is being transferred, and I would assume about another NZ$1mill in current share value to make $5mill total, this is over 2mill shares at about NZ45c.
From a shareholder point of view, the press mistake is quite a big one - I purchased some shares based on the first NR. I would also like to know when GRU#1 will be operational at Drybread, as it's been a few months since it was retreived from Earnscleugh, and at that stage it had presumably been in going order.
From NZ Resources today, delayed response..CORRECTION FROM SOURCE: Glass Earth Gold to Purchase Joint Venture Partner to Consolidate Placer Gold Production
WELLINGTON, NEW ZEALAND--(Marketwire - March 15, 2012) - 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$274,000 in net revenue based on only one Gold Recovery Unit ("GRU") operating. The Company plans to commission a further GRU in Q2 and another in Q3.
This together with 100% ownership and increase in throughput should enable the Company to achieve its previously articulated production goals.
Consideration
The transaction is subject to TSX Venture Exchange approval.
NZ$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
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.
New high grade hit for Glass Earth Gold at Muirs Reef
Ross Louthean — 16 March 2012
Active New Zealand gold explorer and boutique miner Glass Earth Gold Ltd (TSX-V and NZAX: GEL) has had strong results from the second of 17 diamond holes being drilled at Muirs Reef in the Hauraki goldfield.
Assaying of hole MSDDH9 gave a series of intersections, the most significant being 2 metres from 48m depth grading 38.4 grams/tonne gold and 49.2 g/t silver. Higher up the hole there was a 2m interval grading 2.5 g/t Au and 1.2 g/t Ag and from 85m depth there was an 18m section @ 0.78 g/t Au and 0.9 g/t Ag. The drilling programme at Muirs Reef will continue through this year and take in about 2,500m of drilling to identify gold mineralisation in the Massey Reef area.
Simon Henderson, Glass Earth Gold’s chief executive said these results were encouraging news for the project and the company was now moving to double-shifting of the rigs for the next holes. “Our exploration team is working hard to develop and evaluate the Massey Reef gold system – the results so far show continuity and expand the system, and striking this high grade interval is a very promising sign,” he said.
The Massey Reef drilling programme follows completion of trenching last year that included significant surface results, including 24m @ 5.7 g/t Au and 1.9 g/t Ag, and 10m @ 3.1 g/t Au and 1.7 g/t Ag. Muirs Reef is 65 kilometres south-east of Newmont Waihi Gold’s Martha open cut mine which has an historic production of 10 M ounces gold and substantially more silver. Muirs Reef is at the southern end of the Hauraki Goldfield. Two quartz reefs were mined within this epithermal system until the 1930s, with over 43,000 oz of gold extracted from shallow surface and underground workings.
Massey Reef is part of the Muirs Reef mining area. Recent surface trenching results in outcropping and sub-cropping quartz veins demonstrated a 650m strike length of the surface mineralisation, ample dimension to potentially host a significant gold resource.
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