| Thu 2 Aug 2007, 17:24 | | GBG - Great Basin - Great Basin announces approval |
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GBG
GBG
GBG - Great Basin - Great Basin announces approval of BEE transaction by
South African Reserve Bank for Burnstone Gold Project
in South Africa
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 ANNOUNCES APPROVAL OF BEE TRANSACTION BY SOUTH AFRICAN RESERVE
BANK FOR BURNSTONE GOLD PROJECT IN SOUTH AFRICA
August 02, 2007 Vancouver BC. Great Basin Gold Ltd ("Great Basin Gold" or
the "Company") (TSX: GBG; AMEX: GBN; JSE: GBGold) announces that further to
Great Basin Gold announcements of February, May and July 2007, finalization
of the black economic empowerment ("BEE") transaction with Tranter Gold
(Pty) Ltd ("Tranter") has achieved a significant milestone with the
approval of the transaction by the South African Reserve Bank ("SARB").
The SARB approval was obtained within the extended completion date of the
BEE transaction, namely July 31, 2007. Great Basin is now in a position to
submit its application for a mining right in respect to the Burnstone
project, which will be done within days of this announcement.
The approval granted is subject to the provisions of the South African
Exchange Control Regulations, and Tranter may only hold the Great Basin
Gold shares on the Johannesburg Stock Exchange. In terms of the agreement
announced in February 2007, Tranter will participate in the listed Great
Basin Gold entity, equivalent to a 26% see-through value of the Burnstone
Project. This ensures compliance by Great Basin Gold to the Minerals and
Petroleum Development Act. Tranter will be acquiring 19,938,650 shares of
Great Basin Gold common stock, representing approximately 10% of the Great
Basin Gold shares outstanding after completion of the transaction. The
US$37 million cash inflow from the completion of the BEE transaction will
be solely allocated to the development of the Burnstone Project in South
Africa.
President and CEO Ferdi Dippenaar said: "Management is delighted with the
approval which is another milestone in the delivery of the Burnstone
Project in South Africa. The approval allows for a win-win situation for
both Great Basin Gold and Tranter, firstly enabling the delivery of the
Burnstone Project whilst Tranter shareholders will achieve exposure to the
international asset base of the Company. The only matter still outstanding
is the signing of the Share Subscription Agreement between Tranter and
Great Basin Gold Ltd and this will be concluded within days This approval
was the last of the remaining issues outstanding and Great Basin Gold will
now, through its wholly owned subsidiary Southgold Exploration (Pty) Ltd,
submit the application for its mining right to the Department of Minerals
and Energy. "
Great Basin has two advanced stage gold projects in two of the world`s best
gold environments. In addition to its Burnstone Gold Project in South
Africa`s Witwatersrand Goldfield, the Company holds a 100% interest in the
Hollister Property on the Carlin Trend in Nevada, USA.
Ferdi Dippenaar
President and CEO
For additional details on Great Basin and its gold properties, please visit
the Company`s website at www.grtbasin.com or contact Investor Services:
Tsholo Serunye in South Africa 27 (0) 11 884 1610
Melanee Henderson in North America 1 800 667-2114
Barbara Cano at Breakstone Group in the USA (646) 452-2334
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 Gold
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,
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 Commission and its home jurisdiction filings that are available
at www.sedar.com.
Date: 02/08/2007 17:24:01 Produced by the JSE SENS Department.
