|June 25, 2012|
GEGL Announces the Closing of a C$2.4 Million Private Placement
GLASS EARTH GOLD Announces the Closing of a
C$2.4 Million Non-brokered Private Placement
Wellington, New Zealand, Monday June 25, 2012.
Glass Earth Gold Limited (TSXV-GEL; NZAX-GEL) ("Glass Earth") today announced the completion of its previously announced non-brokered Private Placement financing for gross proceeds of C$2,357,150.
The financing consisted of 11,785,750 Units at a price of C$0.20 per Unit. Each Unit consists of one common share and one common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.35 per share, exercisable for a period of 24 months and one day from the date of issuance.
Glass Earth paid persons and/or companies who introduced investors to the Company,
on the closing date, a finder's fee payable in cash equal to 6% of the amount raised for a total of CAD$50,730 and non-transferable finder's fee warrants ("Finder's Warrants") to purchase shares in number equal to 6% of the Warrants sold under the Private Placement for a total of 253,650 finder warrants issued. The Finder's Warrants have the same terms as the Warrants issued in conjunction with the Units.
The non-brokered Private Placement has now been fully completed and the net proceeds from the C$2,357,150 will be used towards financing the purchase of 50% of the placer gold operations announced on March 15, 2012, bringing Glass Earth Gold's ownership to 100%. It will also provide additional working capital.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of approximately 10,000 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, (Newmont Mining).
Hauraki Region -- Glass Earth occupies a significant ground position adjacent to the Waihi/Martha Gold Mine; The Newmont-Glass Earth Waihi West JV (Newmont earning 65%) and Hauraki JV (North and Central Areas - 65/35) including drilling at the WKP discovery, is being actively explored and managed by Newmont in concert with Glass Earth Gold.
Central Volcanic Region -- Glass Earth has defined several significant epithermal gold targets in this region including the Muirs Reef project (Mamaku district).
In the South Island, exploration efforts are focused on the Otago Region for mesothermal "Macraes-style" gold targets and expansion of the placer/alluvial gold mining operations.
For additional information on the company, please contact:
• Simon Henderson, President and Chief Executive Officer, at +64 4 903 4980 or ;
• Jeanny So, Director of Operations, CHF Investor Relations, at +1 416 868 1079 x225 or ;
• Anne Robert, Account Manager, CHF Investor Relations, at + 1 514 826 8121 or ; or• Visit the Company's website at www.glassearthgold.com.
To receive Company news via email, contact email@example.com and mention "Glass Earth news" in the subject line.
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.
You can view the Next News Release item: Thu Jun 28, 2012, GEGL Increases Gold Output with Second Plant in Otago
You can view the Previous News Release item: Mon Jun 18, 2012, CEO Clips is Featuring Glass Earth Gold on The Documentary Channel
You can return to the main News Release page, or press the Back button on your browser.