| Tue 15 May 2007, 10:39 | | GBG- Great Basin Gold Limited -- Great Basin Gold |
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GBG
GBG
GBG- Great Basin Gold Limited -- Great Basin Gold Adopts Shareholder Rights Plan
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")
Press Release
GREAT BASIN GOLD ADOPTS SHAREHOLDER RIGHTS PLAN
May 14, 2007, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or the
"Company") (TSX: GBG; AMEX: GBN; JSE: GBG) announces that its Board of Directors
has approved a Shareholder Rights Plan Agreement (the "Rights Plan"). The
Rights Plan is being adopted to ensure the fair and equal treatment of all Great
Basin Gold shareholders in the event of any future take-over bid for the
outstanding common shares of the company.
The Rights Plan will provide shareholders with adequate time to properly
evaluate and assess a take-over bid without facing undue pressure or coercion.
The Rights Plan also provides the Board with additional time to consider any
take-over bid and, if appropriate, to explore alternative transactions in order
to maximize shareholder value.
Great Basin Gold President and CEO, Ferdi Dippenaar commented "This Rights Plan
is not being adopted in response to any specific proposal to acquire control of
Great Basin Gold, but is simply a prudent, proactive measure that is being
adopted in light of the increased pace of merger and acquisition activity in the
mining industry."
The Rights Plan is not designed to prevent take-over bids that treat Great Basin
Gold shareholder fairly. Pursuant to the terms of the Rights Plan, any bid that
meets certain criteria intended to protect the interests of all shareholders is
deemed to be a "Permitted Bid". A Permitted Bid must be made by way of a take-
over bid circular prepared in compliance with applicable securities laws and, in
addition to certain other conditions, must remain open for 60 days. In the
event that a take-over bid does not meet the Permitted Bid requirements of the
Rights Plan, the rights issued under the Rights Plan will entitle shareholders,
other than any shareholder or shareholders involved in the take-over bid, to
purchase additional common shares of Great Basin Gold at a significant discount
to the market price of the common shares at that time.
The Rights Plan is subject to regulatory approvals, including approval by the
TSX, and will be presented for ratification by shareholders at the Great Basin
Gold annual meeting to be held on June 19, 2007. If ratified by shareholders,
the Rights Plan will have a term of three years.
Great Basin has two advanced stage gold projects in two of the world`s best gold
environments: the Burnstone Project in South Africa`s Witwatersrand Goldfield,
and the Hollister Project on the Carlin Trend in Nevada, USA. Great Basin is
completing the first of a two-phase underground development program at Burnstone
and is currently completing work toward a feasibility study on the Hollister
Project.
For more information on Great Basin and its projects, please visit the Company`s
website at www.greatbasingold.com or call 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 ("the Company") 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, changes in and the effect of government
policies regarding mining and natural resource exploration and exploitation, and
continued availability of capital and financing, 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: 15/05/2007 10:39:01 Produced by the JSE SENS Department.
