Glass Earth Gold to take control of Hauraki JV with Newmont, shrink share base
Gold explorer Glass Earth Gold [NZAX: GEL] will take full management and funding control of gold explorations at its Hauraki joint venture with Newmont Mining as it restructures to make the project its sole focus and consolidate its stock as it mulls refinancing options.
The changes will see Glass Earth take control of the drilling and development of the WKP joint venture's gold resources near Waihi, spending up to $730,245 on exploration by October next year. The company then has the potential to boost its 35 percent stake up to 51 percent at a rate of $200,000 spending for every 1 percent.
Colorado-based miner Newmont has the option to keep its 49 percent or can claw back control to 65 percent at a premium of $600,000 of project spending for every 1 percent. Newmont has a further option of expanding its stake through further funding.
"This joint venture is a critical working relationship that governs our key asset," said Thomas Rabone, chief executive of the gold explorer. "Having the ability to manage WKP's development, with the opportunity to grow our own stake, offers a fundamental change to our shareholders and a clear path forward for the company."
The company expects to have a preliminary economic assessment of the project by June next year.
Glass Earth has restructured to make the joint venture its sole concern, abandoning its Neavesville prospect in the Waikato after slow progress in negotiations with land owners.
The company is consolidating shares, on a 10-to-one basis and re-naming as Antipodes Gold as part of the restructure.
The shares were unchanged at 15 cents and have declined 89 percent over the past 12 months.