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Glass Earth Gold buys out Dunstan Mining partner for $4M

Friday 16th March 2012

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Glass Earth Gold, the miner whose shares trade on the NZAX and Canada’s TSX Venture Exchange, has bought out joint venture partner in Otago for $4 million.

The company purchased the 50 percent shares of Dunstan Mining it didn’t already own and 100 percent of the shares in Goldmines New Zealand, Glass Earth said in a statement. The JV related to its mining and exploration project in Otago.

Glass Earth will pay $500,000 cash immediately, $1.5 million by June 11, and a further $2 million over a 25-month period from July.

“Taking full control of the placer mining activities will significantly accelerate and increase production capacity,” the company said.

The company said it expects a significant increase in gold output in 2012.

The stock was unchanged at 50 cents in trading today.

In 2011 the gold explorer made a loss of C$670,000 in the three months ended Sept. 30, taking its loss for the first nine months of its year to C$993,000. The joint venture in Otago contributed cash of C$85,000 for the three months, up from C$61,000 in the same quarter last year.

BusinessDesk.co.nz

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