| Mon 7 Apr 2008, 14:29 | | GBG - Great Basin Gold Limited - Great Basin Gold |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold Completes Rusaf Acquisition
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 RUSAF ACQUISITION
April 7, 2008, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or the
"Company") (TSX: GBG; AMEX: GBN; JSE: GBG) announces that the agreement it
entered into on February 14, 2008 to acquire the remaining 63% of the fully
diluted equity shares of Rusaf Gold Limited (`Rusaf`), for a total consideration
of $14.4 million payable in approximately 4.9 million Great Basin Gold common
shares (`the acquisition"), has been successfully closed. The exchange ratio for
the acquisition was one Great Basin Gold share for every 4.5 Rusaf shares.
The acquisition terms also provide for additional Great Basin Gold shares to be
issued in the first three years from closing, contingent upon gold discoveries
above a threshold of 500,000 ounces in size on certain mineral prospects
formerly held by Rusaf. In the event of such discoveries, Great Basin Gold will
issue shares valued at the higher of the current or then-prevailing market price
to the former Rusaf shareholders on the basis of valuing these gold ounces at
US$15/oz for inferred resources and US$40/oz for measured and indicated
resources (subject to a minimum average cut-off grade of 1.5 grams per tonne or
0.04 oz per ton). The Company has also agreed to spend a minimum of $7 million
and up to a maximum of $19 million to explore the newly acquired properties
during this period, depending on independent advice as to the likelihood of
exploration success.
Ferdi Dippenaar, President and CEO, commented: "We are pleased to have
completed the regulatory process and are busy integrating these assets within
Great Basin Gold`s pipeline of exploration projects. We have retained the
operational management of Rusaf and incentivised the teams to accelerate the
exploration programs underway. Rusaf has approximately $8 million in its
Treasury which will fund the short and medium term exploration programs.
Drilling is currently underway on a number of these properties with results
expected in the second half of 2008."
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)11 301 1800
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 40-F filing with the United States
Securities and Exchange Commission and its home jurisdiction filings that are
available at www.sedar.com.
Date: 07/04/2008 14:29:50 Produced by the JSE SENS Department.
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