| Thu 19 Apr 2007, 17:34 | | GBG - Great Basin Gold Completes C$149.5 Million F |
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GBG
GBG
GBG - Great Basin Gold Completes C$149.5 Million Financing Regains 100% Interest
In Hollister Development Block Project In Nevada
GREAT BASIN GOLD LIMITED
(Incorporated in Canada and registered as an External Company in South Africa)
(Registration No. 2006/021304/10)
Share Code: GBG & ISIN Number: CA3901241057
("Great Basin" or "the Company")
GREAT BASIN GOLD COMPLETES C$149.5 MILLION FINANCING
REGAINS 100% INTEREST IN HOLLISTER DEVELOPMENT BLOCK PROJECT IN NEVADA
April 19, 2007, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin" or the
"Company") (TSX: GBG; AMEX: GBN; JSE: GBGOLD) announces that it has completed
its previously announced public offering of 57.5 million units at a price of
C$2.60 per unit, raising gross proceeds of C$149,500,000. Each equity unit
comprises a common share and a half of one common share purchase warrant. Each
full warrant will entitle the holder to purchase a common share of Great Basin
Gold at a price of C$3.50 until April 20, 2009. A syndicate led by BMO Capital
Markets and including Desjardins Securities Inc., Pacific International
Securities Inc. and RBC Capital Markets acted as underwriters in connection with
the offering. The underwriters exercised their 15% over-allotment option in
full.
The use of proceeds from the financing includes the cash purchase component of
Hecla Ventures Corp ("HVC") for US$45 million (plus 7.93 million Great Basin
shares). HVC held 50% earn-in rights to Great Basin`s Hollister Development
Block gold project ("HDB") on the Carlin Trend in Nevada. As a consequence of
the HVC purchase, Great Basin Gold now holds a 100% interest in the entire 937
unpatented mining claims comprising the Hollister Property (subject to certain
royalty obligations) and, in particular, the HDB that comprises approximately 5%
of the property. Exploration by Great Basin Gold to 2001 had outlined a high
grade gold-silver mineral resource in the HDB. Since mid 2002, HVC has operated
an underground exploration and development program under the earn-in agreement,
which was designed to provide the necessary data for completion of a feasibility
study for the HDB project. Hecla spent some US$30 million on design work,
permitting, establishing extensive surface infrastructure and underground
services, purchasing equipment and completing underground programs. The
underground programs included excavating a 6,800 ft access decline, 1000 ft of
drifting along the veins and completing approximately 55,000 ft of underground
drilling. The HDB was the subject of a 2006 preliminary economic assessment
conducted for Great Basin Gold, and a recent report that updates exploration
activities to earlier this year. These National Instrument 43-101 technical
reports are filed at www.SEDAR.com.
Great Basin Gold President and CEO Ferdi Dippenaar commented: "We received
strong support for the recent financing undertaken to complete this purchase,
showing that the market, like the management of Great Basin Gold, believes that
there is significant value to be unlocked in the near term by developing the
HDB.
"Now that the underground access and initial underground drilling program is
complete, we will be working towards a new resource estimate. Subject to the
upgrading of the resources into measured and indicated categories, the
feasibility study is on track for completion by the end of June 2007. Currently,
we are proceeding with bulk sampling of the exposed vein systems. This work will
assist with the mining, metallurgical and geological aspects of the report.
"The Company has embarked on a further approximately 40,000 ft of underground
exploration drilling focused on specific areas which we believe, in combination
with the 55,000 ft already completed, will deliver a larger resource. We will
immediately utilize a portion of the proceeds of the offering to purchase a
surface drill rig which will enable us to accelerate drilling activities on
targets outside of the HDB.
"In addition to the work at Hollister, good progress is being made on the first
of a two-stage development program designed to take the Company`s Burnstone Gold
Project in South Africa to production in two years. The current phase includes
constructing a decline and taking a bulk sample, and will be completed in early
2008.
"With the completion of the HVC purchase and advancement of the Burnstone
Project, we believe Great Basin is entering a distinct new phase, moving from an
advanced exploration company to being recognized as an emerging gold producer."
For additional details on Great Basin and its gold properties, please visit the
Company`s website at www.greatbasingold.com or contact Investor Services at
(604) 684-6365 or within North America at 1-800-667-2114.
Ferdi Dippenaar
President and CEO
No regulatory authority has approved or disapproved the information contained in
this news release.
Cautionary and Forward Looking Statement Information
This release includes certain statements that may be deemed "forward-looking
statements". All statements in this release, other than statements of historical
facts, that address possible future commercial production, reserve potential,
exploration drilling results, development, feasibility or exploitation
activities and events or developments that Great Basin expects to occur are
forward-looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploitation and
exploration successes, effect of and changes to government policies regarding
mining and natural resource exploration and exploitation, availability of
capital and financing, geopolitical uncertainty and political and economic
instability, and general economic, market or business conditions. Investors are
cautioned that any such statements are not guarantees of future performance and
those actual results or developments may differ materially from those projected
in the forward-looking statements. For more information on the Company,
Investors should review the Company`s annual Form 20-F filing with the United
States Securities and Exchange Commission and its home jurisdiction filings that
are available at www.sedar.com.
Date: 19/04/2007 17:34:08 Produced by the JSE SENS Department.
