Boutique Otago gold producer Glass Earth Gold has clinched $C2.35 million ($NZ2.95 million) from private equity placements out of Canada, enabling it to refinance the $4 million buy-out of its former joint venture partner.
The partner buy-out was $2 million in shares and $2 million cash, the latter to comprise 25 monthly payments of $80,000 from proceeds from three alluvial gold diggings around the Maniototo.
Glass Earth sold 11.78 million units at $C20c, which each carry a warrant to purchase an ordinary share at $C35c during the next two years.
The company has forecast gold revenue for the remainder of the year of up to $2 million and if production targets are met, revenue in 2013 is estimated at $6 million.
The company has three Maniototo gold recovery units: one in the Ida Valley and two in the Manuherikia valley.
Glass Earth disclosed it paid $C50,730 in investment finders' fees, along with 253,650 non-transferable finder's fee warrants, also set at $C35c.
