Glass Earth taps private Canadian investors

Photo / Greg Bowker

NZAX-listed miner Glass Earth Gold is looking to raise C$5 million through a private placement in Canada.

The miner will issue 9.1 million units at 55 Canadian cents apiece, giving buyers one share and one-half of a warrant, it said in a statement. For each whole warrant purchased, investors can buy one share at 80 Canadian cents, 24 months from the date of issue.

The funds raised will be used for drilling, mineral exploration and general working capital, it said.

Glass Earth isn't using brokers for the placement, and will instead pay finders a cash fee of 7 per cent of funds raised. Qualified finders will also be issued non-transferable finders' warrants to buy the same units equal to the 7 per cent of those sold.

The placement is subject to acceptance by the TSX Venture Exchange.

The miner more than halved its first-half loss to $323,000 in the six months ended June 30, and is upbeat on the prospects of its Muirs gold site, south of Tauranga.

The shares fell 9.5 per cent to 57 Canadian cents on the TSX Venture Exchange, and last traded on the NZXAX on September 9 at 79 cents apiece, valuing the company $47.1 million.

The stock has more than doubled in price in New Zealand this year.