About two years ago, Glass Earth's cash-flow was becoming perilously low, but it has successfully recapitalised several times since then. It is understood to have spent more than $30 million during the past four years; the majority of it around Otago prospects.
Following the announcement, Glass Earth's shares were down more than 11% to trade around 70c.
During 2010, Glass Earth completed two fundraising exercises which raised $6.2 million and at the end of December carried $C3.9 million cash then in January received a further $500,000.
Glass Earth booked a loss for 2010 of $1.4 million, compared with $2.6 million the year before.
Glass Earth's chief executive, Simon Henderson, said together with increasing mining income from Otago, the $C5 million private placement would leave Glass Earth in a strong position for its drilling activities in 2011.
"The company consolidated its placer activities by acquiring 50% of its joint venture party's mining company; and related placer mining equipment," he said in a statement yesterday.
Gold production from Otago last year saw cash generation total $357,000, and forecasts in December said alluvial mining expansion during 2011 should mean a significant increase in both gross and net revenue.
Otago remains the focus of Glass Earth's South Island exploration efforts, which includes hard-rock exploration and some small-scale mining of loose alluvial gold around Central Otago.
In the North Island, exploration efforts are focused on gold systems around the Hauraki and central volcanic region, including a joint venture with Newmont in the Waihi area.
