Glass Earth Gold, which explores for the precious metal over some 17,000 square kilometers in New Zealand, plans to raise C$500,000 in a private placement.
The Wellington-based company, whose shares trade on the NZAX market and Canada’s TSX Venture Exchange, will issue 10 million units at 5 Canadian cents apiece. The units comprise one ordinary share and warrant to buy a share at 10 cents, exercisable over three years, the company said in a statement.
The funds will be used for general corporate purposes. The placement requires approval of the TSX. Shares of Glass Earth trade infrequently on the NZAX and were at 8 NZ cents yesterday. The TSX shares were last at 4.5 Canadian cents.
Separately, the company is issuing 1.1 million shares under arrangements to farm in to the Rise & Shine prospect and an Ophir Gold exploration permit, both in Otago.
Under the Rise & Shine agreement, announced in June, Glass Earth has an option to acquire 70% of CanAlaska Uranium’s Golden Fern Resources unit, which holds 70% of Rise & Shine, via the issue of shares and funding of up to $900,000 of exploration costs.
Golden Fern has a concurrent JV with OceanaGold Corp. over Rise & Shine.
In August, Glass Earth announced an option to acquire 50% of the Ophir prospect from Ophir Gold.