Glass Earth Gold Files Q3 Financials to 30 September 2013
November 29 2013 - 11:00AM
Marketwired
Glass Earth Gold Files Q3 Financials to 30 September 2013
WELLINGTON, NEW ZEALAND--(Marketwired - Nov 29, 2013) - Glass
Earth Gold Limited (TSX-VENTURE:GEL)(NZAX:GEL) ("Glass Earth" or
the "Company") announced today that it has filed its September 30
2013, third quarter Financial Statements and associated
Management's Discussion and Analysis ("MD&A") report,
pertaining to that period, with regulatory authorities.
The Company is now focused solely on exploration and development
projects in the Hauraki Region of the North Island of New Zealand.
This area is where its key hard-rock projects of WKP and
Neavesville lie, as well as its Waihi West prospect, which is
adjacent to the Newmont owned and operated Martha gold mine at
Waihi.
In spite of the cost-containment measures taken (ref: News
release Nov 6, 2013), there has been some strain in meeting the
Company's financial obligations in this period. As a result, it has
been necessary to reach a deferred payment compromise with its
subsidiary's placer mining creditors ($620,000) and another
accommodation with Newmont Mining on cash calls due in respect of
the Hauraki Joint Venture ($588,000).
Hauraki Joint Venture (includes WKP) - Prospective change in
management
Since Glass Earth Gold decided to focus on the WKP project,
management has explored several avenues to boost exploration and
give more momentum to the project. Consequently, negotiations are
well advanced with Newmont Mining (65%) for Glass Earth (New
Zealand) Limited (35%) to assume management of the Hauraki Joint
Venture and sole fund exploration activities in order to increase
its equity in the JV.
Outstanding cash calls of $588,000, due to Newmont by GENZL as
at 30 September 2013, would form part of the overall funding for
the 2014 & 2015 exploration expenditures. Newmont has reserved
its position in respect of the unpaid cash calls by issuing a
Default Notice under the terms of the Hauraki Joint Venture
Agreement ("JVA") on 17 October 2013.
Neavesville Prospect (GENZL was 50% - now 100%)
As from 6 November 2013, the Company has regained 100% ownership
of the Neavesville prospect opportunity. Negotiations are underway
with Eurasian Minerals to amend the terms of the Option Agreement
with them in order to defer a looming Option payment deadline of 31
December 2013.
Corporate Refinancing
The Company, in common with many junior gold explorers, needs to
refinance. Management and the Board are of the opinion that the
above-mentioned change in management for WKP and 100% ownership
opportunity for Neavesville will add value to the Company's
profile, thus enhancing its potential to attract funding to
continue hard-rock activities and cover General &
Administration expenses.
FINANCIALS
Operational Activities
The Company's corporate and exploration activities for the
quarter are summarized in the attached Quarterly Overview. The
Company's cash position as at September 30, 2013 was $423,000 with
trade payables of $1,368,000, of which $1,208,000 are discussed
above.
The Company sold its placer mining operations effective end of
August and incurred a net mining loss for the three months ending
September 30, 2013 of $482,000.
|
|
Three months |
|
|
Three months |
|
Notes |
|
|
ended |
|
|
ended |
|
|
|
September 30 |
|
|
September 30 |
|
|
|
|
2013 |
|
|
2012 |
|
|
|
Gold Mining Revenue |
530,000 |
|
|
1,079,000 |
|
1 |
|
Mining costs |
(961,000 |
) |
|
(1,355,000 |
) |
|
|
Depreciation and amortisation |
(51,000 |
) |
|
(5,000 |
) |
|
|
Gross (Loss) |
(482,000 |
) |
|
(281,000 |
) |
|
|
|
|
|
|
|
|
|
|
Administrative and Personnel expenses |
(162,000 |
) |
|
(187,000 |
) |
|
|
Finance (loss)/income |
77,000 |
|
|
12,000 |
|
|
|
|
|
|
|
|
|
|
|
Loss before Income Taxes |
(567,000 |
) |
|
(456,000 |
) |
|
|
Income tax recovery |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Loss after Income Taxes |
(567,000 |
) |
|
(456,000 |
) |
|
Note 1: Sales revenues down due to poor 24/7 July and reduced
hours in Aug (12/5) prior to handover of operations to new owner.
The severe drop in the gold price impacted the operations over the
past few months.
About Glass Earth Gold
Glass Earth Gold is an exploration company focused on unveiling
the high-grade potential of the Wharekirauponga (WKP) and
Neavesville projects in Hauraki, New Zealand. The properties are
situated in areas of low suphidation gold-silver epithermal
systems, similar to the system that hosts the Newmont Mining-owned
Martha Hill mine.
The WKP project is a joint-venture between Glass Earth Gold
(35%) and Newmont Mining (65%). It holds a NI 43-101 inferred
resource of 1.3 million tonnes at an average grade of 6.1 g/t Au
and 9.3 g/t Ag for a total of 260,000 ounces of gold and 390,000
ounces of silver.
For more information on Glass Earth Gold, please visit
www.glassearthgold.com.
To receive Company news via email, contact
info@glassearthgold.com and mention "Glass Earth news" in the
subject line.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor New Zealand Exchange Limited has reviewed
this release and neither accepts responsibility for the adequacy or
accuracy of this release.
Glass Earth Gold LimitedSimon HendersonPresident and Chief
Executive Officer+64 4 903 4980info@glassearthgold.comGlass Earth
Gold LimitedAnne RobertManager, Investor Relations+ 1 514 880
0184anne.robert@glassearth.co.nzwww.glassearthgold.com
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