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GBG
GBG
GBG - Great Basin Gold - Renewal Of Cautionary Announcement
Great Basin Gold Limited
(Incorporated in Canada and registered as an External Company in South
Africa)
(External Company Registration number 2006/021304/10)
Share code: GBG & ISIN: CA3901241057
("Great Basin Gold")
RENEWAL OF CAUTIONARY ANNOUNCEMENT
Further to the detailed cautionary announcement dated 21 February 2007
("the detailed cautionary announcement") and the renewal of cautionary
announcement dated 4 April 2007, regarding the introduction of Tranter Gold
(Proprietary) Limited ("Tranter") as a broad-based black economic
empowerment shareholder in Great Basin Gold ("the proposed transaction"),
shareholders of Great Basin Gold are hereby advised that the relevant
transaction processes are continuing as envisaged.
As announced in the detailed cautionary announcement, Gold Fields Limited,
GFL Mining Services Limited ("GFL"), Great Basin Gold and Tranter ("the
parties") entered into a heads of agreement relating to the net smelter
royalty payable by Southgold Exploration (Proprietary) Limited
("Southgold") to GFL ("the net smelter royalty"), in terms of which
Southgold will pay to GFL an amount of R80 million in full and final
settlement of the net smelter royalty and GFL will simultaneously
contribute an amount of R80 million to Tranter (`the net smelter royalty
transaction"). R70 million of this contribution is to be utilised by
Tranter for the purposes of partly funding the total purchase consideration
for the proposed transaction of R260 million ("the purchase
consideration"). The date for the conclusion of a definitive agreement
between the parties in respect of the net smelter royalty transaction has
been extended to 31 May 2007.
The balance of the funding required for the proposed transaction of R190
million is to be secured by Tranter on commercially acceptable terms.
Tranter is currently in advanced stages of finalising these funding
arrangements.
Following the finalisation of the above processes, various other conditions
precedent, as set out in the detailed cautionary announcement, will be
required to be fulfilled, including, inter alia, the required regulatory
approvals being obtained for the proposed transaction in Canada and South
Africa, which comprise, inter alia, approval from the South African Reserve
Bank and approval from the Toronto Stock Exchange, the American Stock
Exchange and the JSE Limited.
Accordingly, Great Basin Gold shareholders are advised to continue to
exercise caution when dealing in their shares until a further announcement
is made in this regard.
16 May 2007
Sandton
Corporate advisor to Great Basin Gold
T-Corporate
Sponsor
Nedbank Capital
Date: 17/05/2007 10:00:01 Produced by the JSE SENS Department.
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