Mining exploration company Heritage Gold is upbeat about gold mining in New Zealand, citing a change in attitude by the government and a high gold price.
Chairman Geoff Hill told shareholders at the annual meeting today that one of the most important company-making events occurred in December last year when the company was granted a mining permit by the New Zealand government.
"It was a long time coming but it does transform your company from being a simple explorer," he said.
There has been a "very important and positive change in attitude" both by the government and by global groups about the prospectivity of New Zealand, particularly for precious metals, he said.
The possibility of a resource rent tax and continuing political uncertainty over who is running Australia has also engendered interest from across the Tasman.
Heritage Gold is a diversified mining exploration company which finds, develops and packages mineral properties in Australasia.
It said today that Broken Hill Prospecting (BHPL), in which it has a shareholding, will issue a prospectus next month and look to raise approximately $A5 million ($NZ6.5 million) by selling 25 million shares, with attached options, at A20c each. The shares are expected to list on the NZX and ASX in November.
"Listing of BHPL will add significantly to the value of Heritage Gold's investment and raising capital specifically for Broken Hill Prospecting's needs will reduce the joint venture demand for funds," said Mr Hill.
The company holds tenements in the southern part of the Coromandel Peninsula at Waihi.
Mr Hill said the gold price last week reached a historical high of $US1270 ($NZ1733) an ounce.
Craigs Investment Partners' September newsletter forecasts the gold price will be $US1337 at the end of this year and $US1425 at the end of 2011. There is even speculation that the price may reach $US2000 an ounce in the future.
In New Zealand dollar terms, gold increased in value over the last 12 months by roughly 23.2%.
The company's current objective is to complete a bankable feasibility study and justify the capital cost of establishing a new operation at its Talisman mining permit.
Shareholders approved the re-appointment of Peter Atkinson and Warwick Grigor as directors and re-appointment the auditors.