Document Actions
Glass Earth plans to joint venture with GCO in central volcanic region
27 March 2007 - Wellington-based gold exploration company Glass Earth Ltd, says it plans to enter a joint venture with Houston-based GCO Minerals Company for three exploration permits in the central volcanic region of the North Island.
In the Management Discussion and Analysis for the seven months ended 31 December 2006, issued by the Toronto Stock Exchange-listed Glass Earth, the company says it has entered into a letter of intent with GCO to carry out a joint venture on GCO's EP 40656, EP 40690 and EP 40691.
Glass Earth says the three permits are contiguous to Glass Earth's significant permits in the area.
Under the proposed joint venture terms Glass Earth would spend NZ$500,000 meeting near and mid term work obligations of the GCO permits in order to keep them in good standing. This would earn Glass Earth 70% equity in the three permits.
Glass Earth would also become manager of the joint venture.
Once Glass Earth had earned its 70% equity in the GCO permits, GCO may elect to fund its percentage interest share of joint venture expenditure, or may elect to dilute under an agreed formula, under any successive programme and budget.
Other details remained to be negotiated between the two companies.
GCO Minerals is part of the petroleum and minerals division of International Paper (IP), the largest paper and forest products company in the world. IP held a 50.5% stake until last year in Carter Holt Harvey (CHH), New Zealand's largest forestry based pulp and paper company.
Much of GCO's three permit areas on the central volcanic area lay in CHH forestry land. In September 2006 IP sold its interest in CHH to the New Zealand based Rank Group Ltd.
Source: Glass Earth.
Glass Earth says the three permits are contiguous to Glass Earth's significant permits in the area.
Under the proposed joint venture terms Glass Earth would spend NZ$500,000 meeting near and mid term work obligations of the GCO permits in order to keep them in good standing. This would earn Glass Earth 70% equity in the three permits.
Glass Earth would also become manager of the joint venture.
Once Glass Earth had earned its 70% equity in the GCO permits, GCO may elect to fund its percentage interest share of joint venture expenditure, or may elect to dilute under an agreed formula, under any successive programme and budget.
Other details remained to be negotiated between the two companies.
GCO Minerals is part of the petroleum and minerals division of International Paper (IP), the largest paper and forest products company in the world. IP held a 50.5% stake until last year in Carter Holt Harvey (CHH), New Zealand's largest forestry based pulp and paper company.
Much of GCO's three permit areas on the central volcanic area lay in CHH forestry land. In September 2006 IP sold its interest in CHH to the New Zealand based Rank Group Ltd.
Source: Glass Earth.
