| Thu 14 Feb 2008, 15:30 | | GBG - Great Basin Gold Limited - Agreement to purchase the remaining shares in |
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GBG
GBG
GBG - Great Basin Gold Limited - Agreement to purchase the remaining shares in
Rusaf Gold Limited
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 CONCLUDES AGREEMENT TO PURCHASE THE REMAINING SHARES IN RUSAF
GOLD LIMITED
February 14, 2008, Vancouver, BC - Great Basin Gold Ltd. (TSX: GBG; AMEX: GBN;
JSE: GBG) announces that it has entered into an agreement with Vancouver based
Rusaf Gold Ltd. ("Rusaf") whereby Great Basin Gold will purchase the remaining
63% of the fully diluted equity shares of Rusaf for total consideration of
CDN$14.4 million, payable in approximately 4.9 million Great Basin Gold common
shares. The exchange ratio was 1 (one) Great Basin Gold share for every 4.5
(four and a half) Rusaf shares.
Great Basin Gold acquired the initial 37% of Rusaf in June 2007.
Rusaf is a Canadian registered exploration company, operating from Dar Es
Salaam, Tanzania, with 100% owned subsidiary companies that hold prospecting
rights to properties in Tanzania and Russia. Rusaf holds a number of properties
including:
* an area of approximately 3,000 square kilometres in the Lupa goldfield in
South Western Tanzania, at which a drilling program was initiated in
November 2006 and on which a secondary drill program will commence in May
2008;
* ground approximately 100 kilometres east of Mbeya in the Lupa South
goldfield in Tanzania;
* ground in the Lake Victoria region of the Geita Archean Greenstone Belt in
Tanzania, on which a drilling program of approximately 30 000 metres
commenced on 05 February 2008; and
* the Kurils project on the Russian Island of Iturup. Following the results
from a trench sampling and assay program confirming the presence of a high
grade gold deposit and the continuity of the mineralization, Rusaf is
planning a drilling program later this year targeting the shallow
epithermal deposit.
President and CEO Ferdi Dippenaar said: "Following good progress made by the
Rusaf team with exploration activities on the various properties, the purchase
of the remaining Rusaf shares became the next logical step in expanding our
exploration portfolio. This acquisition is in line with Great Basin Gold`s
strategic objective of growing its asset base in Southern Africa. The Rusaf
operational team will remain in place and manage the exploration activities.
This will ensure that the current management teams at the various operations
continue with the delivery of the Burnstone and Hollister Projects. The
inclusion of this significant land package offers our shareholders country as
well as deposit type diversity. Most of these targets currently being drilled
are shallow and of an open-pit nature. This bodes well for the future of the
company."
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: 14/02/2008 15:30:02 Produced by the JSE SENS Department.
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