Glass Earth makes $C2.36m placement to fund Otago buyout
BUSINESSDESK: Glass Earth Gold, the miner whose shares trade on the NZAX and Canada’s TSX Venture Exchange, completed a $C2.36 million private placement of shares that will be used to buy out its joint venture partner in Otago.
The company sold 11.8 million units, consisting of one share and one warrant, at 20 Canadian cents apiece. The warrants allow the holder to buy one ordinary share at 35 Canadian cents over a 24-month period from date of issue.
Shares of Glass Earth last traded at 19 Canadian cents on the TSX and 28 cents on the NZX.
Glass Earth paid a finder’s fee for introducing investors to the company amounting to 6% of the total raised, or $C50,730.
The finders also got "non-transferable finder’s fee warrants" equal to 6% of the warrants sold, a total of 253,650 finder warrants in total.
The company plans to use the funds to help finance its purchase of 50% of the placer gold operations that it didn’t already own and to provide working capital.