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GBG
GBG
GBG - Great Basin - Unaudited Interim Consolidated Financial Statements For
The Quarter And Nine Months Ended September 30, 2008
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")
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER AND NINE
MONTHS ENDED SEPTEMBER 30, 2008
CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian Dollars)
September 30 December 31
2008 2007
$ $
Assets
Current assets
Cash and cash equivalents 4,629,505 78,362,954
Amounts receivable 3,780,656 3,737,903
Inventory 8,213,899 199,185
Due from related parties 2,647 408,638
Held-for-trading financial
instruments 330,225 833,000
Prepaid expenses 1,186,106 811,208
18,143,038 84,352,888
Property, plant and equipment 31,003,844 14,295,727
Reclamation deposits 2,401,864 1,720,456
Available-for-sale financial
instruments 2,179,905 3,326,084
Investments in associate - 7,203,973
Mineral property interests 256,423,906 218,413,930
TOTAL ASSETS 310,152,557 329,313,058
Liabilities and Shareholders`
Equity
Current liabilities
Accounts payable and accrued
liabilities 14,102,742 6,099,246
Due to related parties 136,758 22,098
14,239,500 6,121,344
Long-term borrowings 12,376,471 -
Future income taxes 33,453,160 33,983,164
Site reclamation obligations 1,477,442 1,416,964
47,307,073 35,400,128
Shareholders` equity
Share capital 428,515,773 390,139,711
Warrants 17,389,040 17,934,934
Contributed surplus 20,140,163 11,509,102
Deficit (213,574,975) (132,395,033)
Accumulated other comprehensive
(loss) income (3,864,017) 602,872
248,605,984 287,791,586
TOTAL LIABILITIES AND SHAREHOLDERS`
EQUITY 310,152,557 329,313,058
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the three months ended September 30, 2008 and September 30, 2007
(Expressed in Canadian Dollars)
Three months ended September
30
2008 2007
$ $
(Expenses) income
Exploration expenses (10,694,189) (2,039,344)
Pre-development expenses (17,862,731) (7,702,753)
Accretion of reclamation obligation (17,647) (9,041)
Conference and travel (499,238) (596,371)
Foreign exchange gain (loss) 352,565 (2,396,788)
Legal, accounting, and audit (300,764) (262,812)
Office and administration (5,681,872) (4,202,175)
Other income 174,809 1,097,028
Shareholder communications (146,141) (158,403)
Trust and filing (68,135) (63,752)
Loss before the undernoted and (34,743,343) (16,334,411)
income taxes
Interest expense (260,106) -
Interest income 328,341 968,221
Gain on sale of assets - 994,116
Unrealized loss on held-for-trading (130,040) -
financial instruments
Loss before income taxes (34,805,148) (14,372,074)
Future income tax recovery 3,676,161 944,936
Loss for the period (31,128,987) (13,427,138)
Other comprehensive income
Unrealized (loss)gain on available- (485,350) (447,157)
for-sale financial instruments
Unrealized loss on foreign exchange (3,045,922) -
translation of self-sustaining
foreign operations
Other comprehensive (loss) income (3,531,272) (447,157)
(34,660,259) (13,874,295)
Total comprehensive loss for the
period
Basic and diluted loss per share (0.15) (0.07)
Weighted average number of common 214,345,476 180,963,160
shares outstanding
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the nine months ended September 30, 2008 and September 30, 2007
(Expressed in Canadian Dollars)
Nine months ended September
30
2008 2007
$ $
Revenue 7,889,614 -
(Expenses) income
Production cost (3,890,532) -
Exploration expenses (20,437,332) (7,648,464)
Pre-development expenses (53,812,664) (17,511,210)
Accretion of reclamation obligation (52,113) (28,524)
Conference and travel (1,310,160) (1,076,615)
Foreign exchange loss (1,881,438) (2,486,298)
Legal, accounting, and audit (900,104) (708,262)
Office and administration (16,595,142) (10,317,167)
Other income 249,708 2,311,186
Shareholder communications (435,025) (304,768)
Trust and filing (484,562) (277,499)
Loss before the undernoted and (91,659,750) (38,047,621)
income taxes
Interest expense (260,106) -
Interest income 2,121,352 2,117,097
Loss from associate (351,446) -
Gain on sale of assets - 994,116
Unrealized loss on held-for-trading (502,775) -
financial instruments
Loss before income taxes (90,652,725) (34,936,408)
Future income tax recovery 9,472,783 3,043,302
Loss for the period (81,179,942) (31,893,106)
Other comprehensive income
Unrealized (loss)gain on available- (1,420,967) 93,338
for-sale financial instruments
Unrealized loss on foreign exchange
translation of self-sustaining
foreign operations (3,045,922) -
Other comprehensive (loss) income (4,466,889) 93,338
(85,646,831) (31,799,768)
Total comprehensive loss for the
period
Basic and diluted loss per share (0.39) (0.21)
Weighted average number of common
shares outstanding 209,980,225 153,786,378
CONSOLIDATED STATEMENTS OF SHAREHOLDERS`EQUITY AND DEFICIT
(Expressed in Canadian Dollars)
Nine months ended Year ended
September 30, 2008 December 31, 2007
$ $
Common shares Shares Shares
Balance at 390,139,711 201,457,592
beginning of the
period 203,395,902 113,411,713
Fair value of 1,953,988 2,005,064
options - -
exercised
Fair value of 545,894 688,689
warrants
exercised - -
Shares issued
for cash, net of
share issue - - 57,500,000 121,427,869
costs
Share purchase 4,655,242 5,111,184
options 2,250,386 3,015,830
exercised
Shares issued - 19,666,931
for Hecla
Ventures Corp., - 7,930,214
April 2007
Shares issued to - 36,323,195
Tranter
Burnstone (Pty)
Ltd, October - 19,938,650
2007
Shares issued to 29,700 -
CW Properties
LLC, February
2008 10,000 -
Shares issued 22,787,802 -
for Rusaf Gold
Limited, April
2008 6,613,636 -
Shares issued 76,923 -
for Rusaf Gold
Limited, July
2008 22,041 -
Shares issued
for Puma Gold
(Pty) Ltd,July 1,862,354 6,648,604 - -
2008
Share purchase 1,677,909 3,459,187
warrants
exercised 998,890 1,599,495
Balance at end 428,515,773 390,139,711
of the period 215,153,209 203,395,902
Share purchase Warrants
warrants Warrants
Balance at 17,934,934 1,252,000
beginning of the
period 31,433,202 2,672,000
Warrants issued - 16,210,226
pursuant to
share issuance - 28,750,000
Warrants issued - 1,178,815
pursuant Tranter
transaction - 1,684,312
Exercised (998,890) (545,894) (1,599,495) (688,689)
Expired - - (73,615) (17,418)
Balance at end
of the period 30,434,312 17,389,040 31,433,202 17,934,934
Contributed
surplus
Balance at 11,509,102 7,863,472
beginning of the
period
Non-cash stock- 8,821,573 5,633,276
based
compensation
Share purchase
options
exercised,
credited to
share capital (1,953,988) (2,005,064)
Fair value of - 17,418
share purchase
warrants expired
Options and 1,763,476 -
warrants on
acquisition of
Rusaf Gold
Limited
Balance at end 20,140,163 11,509,102
of the period
Deficit
Balance at (132,395,033) (81,227,367)
beginning of the
period
Net loss for the (81,179,942) (51,167,666)
period
Balance at end (213,574,975) (132,395,033)
of the period
Accumulated
other
comprehensive
income
Balance at 602,872 64,811
beginning of the
period
Unrealized (1,420,967) 538,061
(loss) gain on
available-for-
sale financial
instruments
Accumulated (3,045,922) -
unrealized loss
on foreign
exchange
translation of
self-sustaining
foreign
operations
Balance at end (3,864,017) 602,872
of the period
TOTAL
SHAREHOLDERS`
EQUITY 248,605,984 287,791,586
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended September 30, 2008 and September 30, 2007
(Expressed in Canadian Dollars)
Three months ended September 30
2008 2007
$ $
Operating activities
Loss for the period (31,128,987) (13,427,138)
Items not involving cash
Depreciation 826,950 342,997
Future income tax recovery (3,676,161) (944,936)
Gain on sale of assets - (994,116)
Unrealized loss on held-for-trading
on financial instruments 130,040 -
Non-cash stock-based compensation
expense 2,663,641 1,945,645
Unrealized foreign exchange gain (1,558,500) (1,019,240)
Accretion reclamation obligation 17,647 9,041
Amortization charge 4,785 -
Interest accrual 220,866 -
Changes in non-cash operating
working capital
Amounts receivable 3,748,867 (3,061,320)
Prepaid expenses (394,956) (38,577)
Inventory (5,342,603) (100,383)
Accounts payable and accrued
liabilities 3,055,016 84,967
Reclamation obligation (4,635) (53,557)
Cash used in operating activities (31,438,030) (17,256,617)
Investing activities
Mineral property acquisition costs - (43,096)
Proceeds on sale of assets - 1,000,905
Cost on sale of assets - (6,789)
Purchase of equipment (2,246,163) (8,169,042)
Purchase of shares in Rusaf Gold - (6,000,000)
Limited
Purchase of shares in Kryso (274,788) -
Resources Plc
Reclamation deposits (197,791) (1,500,662)
Cash used in investing activities (2,718,742) (14,718,684)
Financing activities
Common shares issued for cash, net
of issue costs 2,870,940 891,213
Advances received in terms of 13,240,349 -
project financing facility
Advances from (to)related parties 108,859 (649,220)
Cash generated from financing 241,993
activities 16,220,148
Decrease in cash and cash (17,936,624) (31,733,308)
equivalents
Cash acquired through the 5,987 -
acquisition of Puma Gold (Pty) Ltd
Cash and equivalents, beginning of
the period 22,560,142 101,052,347
Cash and equivalents, end of the 4,629,505
period 69,319,039
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2008 and September 30, 2007
(Expressed in Canadian Dollars)
Nine months ended September 30
2008 2007
$ $
Operating activities
Loss for the period (81,179,942) (31,893,106)
Items not involving cash
Depreciation 1,964,510 653,027
Future income tax recovery (9,472,783) (3,043,302)
Gain on sale of assets - (994,116)
Unrealized loss on held-for-trading 502,775 -
on financial instruments
Loss from associate 351,446 -
Non-cash stock-based compensation
expense 8,821,573 4,573,649
Unrealized foreign exchange gain (2,239,117) (2,175,524)
Accretion reclamation obligation 52,113 28,524
Amortization charge 4,785 -
Interest accrual 220,866 -
Changes in non-cash operating
working capital
Amounts receivable 446,310
(3,715,869)
Prepaid expenses (46,496) 312,256
Inventory (6,344,682) (183,678)
Accounts payable and accrued
liabilities 7,898,187 874,283
Reclamation obligation 8,365 (55,440)
Cash used in operating activities (79,012,090) (35,619,296)
Investing activities
Mineral property acquisition costs (230,096) (159,860)
Proceeds on sale of assets - 1,000,905
Cost on sale of assets - (6,789)
Purchase of equipment (18,034,802) (11,325,994)
Purchase of shares in Rusaf Gold - (8,000,000)
Limited
Purchase of Hecla Ventures Corp. - (50,791,500)
Purchase of shares in Kryso (274,788) -
Resources Plc.
Reclamation deposits (681,408) (1,583,758)
Cash used in investing activities (19,221,094) (70,866,996)
Financing activities
Common shares issued for cash, net
of issue costs 6,237,772 142,558,838
Advances received in terms of 13,240,349 -
project financing facility
Advances from (to)related parties 520,651 (729,099)
Cash generated from financing 19,998,772 141,829,739
activities
(Decrease) increase in cash and
cash equivalents (78,234,412) 35,343,447
Cash acquired through the 5,987 -
acquisition of Puma Gold (Pty) Ltd
Cash acquired through the 4,494,976 -
acquisition of Rusaf Gold Limited
Cash acquired through the - 11,156
acquisition of Hecla Ventures Corp.
Cash and equivalents, beginning of
the period 78,362,954 33,964,436
Cash and equivalents, end of the 4,629,505
period 69,319,039
CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Nine months Year ended
ended September December 31
30
2008 2007
$ $
Burnstone - Exploration
Assays and analysis 51,321 122,805
Depreciation 716,689 443,666
Drilling 2,009,062 2,427,840
Engineering 15,813 27,034
Environmental, socio-economic and 397 12,666
land
Equipment rental 3,639 (21,900)
Geological 314,360 279,522
Graphics 1,264 15,727
Property fees and exploration option 41 22,907
payments
Site activities 167,679 (20,884)
Transportation - 3,788
Exploration expenses before the 3,280,265 3,313,171
following
Office and administration 59,582 92,612
Exploration expenses incurred during
the period 3,339,847 3,405,783
Cumulative exploration expenditures, 27,733,355 24,327,572
beginning of period
Cumulative exploration expenditures,
end of period 31,073,202 27,733,355
Hollister - Exploration
Assays and analysis 1,064,310 425,298
Depreciation 1,110,911 612,831
Drilling 7,059,782 2,880,079
Engineering 54,510 1,170,116
Environmental, socio-economic and 823,265 1,574,917
land
Equipment rental - 24,350
Freight - 47,292
Geological (15,711) 606,237
Graphics - 52,026
Property fees and exploration option 133,648 168,334
payments
Site activities 260,356 725,672
Transportation - 68,656
Exploration expenses before the 10,491,071 8,355,808
following
Office and administration 190,556 233,565
Exploration expenses incurred during 10,681,627
the period 8,589,373
Cumulative exploration expenditures, 33,781,885 25,192,512
beginning of period
Cumulative exploration expenditures,
end of period 44,463,512 33,781,885
Rusaf Gold - Exploration
Assays and analysis 534,414 -
Depreciation 74,791 -
Drilling 1,778,790 -
Engineering 76,131
Environmental, socio-economic and 66,662 -
land
Equipment rental 219,942 -
Freight 76,944 -
Geological 522,972 -
Graphics 14,313 -
Property fees and exploration option 300,671 -
payments
Site activities 1,415,854 -
Exploration expenses incurred during 5,081,484 -
the period
Cumulative exploration expenditures, - -
beginning of period
Cumulative exploration expenditures, 5,081,484 -
end of period
Other - Exploration
Assays and analysis 175,641 100,271
Depreciation 8,806 -
Drilling 6,736 195,976
Engineering 63,062 20,109
Environmental, socio-economic and - 4,316
land
Equipment rental 166,056 46,383
Freight 68,276 14,450
Geological 61,781 273,369
Graphics 3,578 18,408
Property fees and exploration option 9,118 84,363
payments
Site activities 747,515 253,184
Transportation - 55,968
Exploration expenses before the 1,310,569 1,066,797
following
Office and administration 23,805 29,820
Exploration expenses incurred during 1,334,374 1,096,617
the period
Cumulative exploration expenditures, 2,528,091 1,431,474
beginning of period
Cumulative exploration expenditures,
end of period 3,862,465 2,528,091
Total exploration expenses before 20,163,389 12,735,776
the following
Office and administration 273,943 355,997
Total pre-development and 20,437,332 13,091,773
exploration expenses incurred during
the period
Cumulative pre-development and 64,043,331 50,951,558
exploration expenditures, beginning
of period
Cumulative pre-development and 84,480,663 64,043,331
exploration expenditures, end of
period
CONSOLIDATED SCHEDULE OF EXPLORATION EXPENSES
(Expressed in Canadian Dollars)
Mineral Property Interests Nine months ended Year ended
September 30 December 31
2008 2007
$ $
Burnstone - Pre-development
Bulk Sampling
Establishment work 72,309 697,457
Equipment rental and services 2,178,640 1,047,259
Surface infrastructure 832,197 836,042
Portal construction 3,589,930 308,660
Underground access and - 4,000,468
infrastructure
Other cost
Optimization - 523,543
Operational costs 4,916,376 3,348,964
Metallurgical plant 307,054 186,837
Vertical shaft 6,654,182 508,530
Energy project 82,984 -
Permanent infrastructure - surface 272,649 -
Permanent infrastructure - 2,212,511 -
underground
Pre-development expenses before the 21,118,832 11,457,760
following
Office and administration 383,595 320,274
Pre-development expenses incurred 21,502,427 11,778,034
during the period
Cumulative pre-development 15,080,245 3,302,211
expenditures, beginning of period
Cumulative pre-development
expenditures, end of period 36,582,672 15,080,245
Hollister - Pre-development
Equipment rental and services 564,677 1,937,187
Surface infrastructure 1,755,124 2,942,261
Underground access and 15,797,562 6,682,426
infrastructure
Operational costs 13,616,472 6,289,421
Pre-development expenses before the 31,733,835 17,851,295
following
Office and administration 576,402 498,990
Pre-development expenses incurred 32,310,237 18,350,285
during the period
Cumulative pre-development 18,350,285 -
expenditures, beginning of period
Cumulative pre-development expenses, 50,660,522 18,350,285
end of period
Total pre-development and 52,852,667 29,309,055
exploration expenses before the
following
Office and administration 959,997 819,264
Total pre-development and 53,812,664 30,128,319
exploration expenses incurred during
the period
Cumulative pre-development and 33,430,530 3,302,211
exploration expenditures, beginning
of period
Cumulative pre-development and 87,243,194 33,430,530
exploration expenditures, end of
period
1. NATURE OF OPERATIONS
These interim consolidated financial statements are prepared in
accordance with Canadian generally accepted accounting principles. They
do not include all the disclosures as required for annual financial
statements under generally accepted accounting principles. These interim
consolidated financial statements should be read in conjunction with the
Company`s annual consolidated financial statements which are available
through the Internet on SEDAR at www.sedar.com.
Operating results for the nine month period ended September 30, 2008 are
not necessarily indicative of the results that may be expected for the
full year ending December 31, 2008.
2. SIGNIFICANT ACCOUNTING POLICIES
These interim consolidated financial statements follow the same
accounting policies and methods of application as the Company`s most
recent audited annual financial statements, except for the changes
described in note 3.
3. Adoption of new accounting policies
Effective January 1, 2008, the Company adopted the following accounting
standards updates issued by the Canadian Institute of Chartered
Accountants ("CICA"). These new standards have been adopted on a
prospective basis with no restatement to prior period financial
statements.
(a) Capital disclosure (Section 1535)
This standard requires disclosure of an entity`s objectives, policies
and processes for managing capital, quantitative data about what the
entity regards as capital and whether the entity has complied with any
capital requirements and, if it has not complied, the consequences of
such non-compliance.
The Company`s objectives when managing capital are:
- To safeguard the Company`s ability to continue as a going concern,
so that it can provide returns for shareholders and benefits for
other stakeholders, and
- To provide an adequate return to shareholders by pricing products
commensurately with the level of risk.
The Company considers the items included in the consolidated statement
of shareholder`s equity as capital. The Company manages the capital
structure and makes adjustments to it in the light of changes in
economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the
Company may issue new shares through private placements, sell assets to
reduce debt or return capital to shareholders. The Company is not
subject to externally imposed capital requirements.
(b) Financial Instruments - Disclosure (Section 3862) and Presentation
(Section 3863)
These standards replace CICA 3861, Financial Instruments - Disclosure
and Presentation. They increase the disclosures currently required,
which will enable users to evaluate the significance of financial
instruments for an entity`s financial position and performance,
including disclosures about fair value. In addition, disclosure is
required of qualitative and quantitative information about exposure to
risks arising from financial instruments, including specified minimum
disclosures about credit risk, liquidity risk and market risk. The
quantitative disclosures must provide information about the extent to
which the entity is exposed to risk, based on information provided
internally to the entity`s key management personnel.
Refer to note 3 of the financial statements filed on www.sedar.com or
the Company`s website for a detailed discussion of these risks.
(c) Inventories (Section 3031)
This standard requires that inventories be measured at the lower of
cost and net realizable value, and includes guidance on the
determination of cost, including allocation of overheads and other
costs. The standard also requires that similar inventories within a
consolidated group be measured using the same method. It also
requires the reversal of previous write-downs to net realizable
value when there is a subsequent increase in the value of
inventories.
The adoption of the Section had no impact on the Company`s
statement of operations. Inventories are valued consistent with
prior years at the lower of cost or net realizable value.
(d) Going Concern - Amendments to Section 1400
CICA 1400, General Standards of Financial Statements Presentation, was
amended to include requirements to assess and disclose an entity`s
ability to continue as a going concern. The new requirements are
effective for interim and annual financial statements relating to fiscal
years beginning on or after January 1, 2008.
At September 30, 2008, the Company had working capital of approximately
$3.9 million. The Company has immediate access to the remaining ZAR100
million ($13 million) of the ZAR200 million ($26 million) first phase of
the project funding facility. The remaining ZAR730 million ($95 million)
of the project funding facility is pending final approval by Investec
Bank Limited and Nedbank Limited ("the lenders"). The facility is South
African Rand denominated and collateralized by a first mortgage bond
over the Burnstone project.
The current available cash and cash flow from operations is sufficient
to fund the operating activities of the Group. The future rate of
development for projects under construction will be influenced by the
availability of funding.
Effective July 1, 2008, the Company amended the following accounting
policy:
(e) Functional currency
The Company re-assessed the functional currency of its development
projects in Nevada as well as South Africa and concluded that the
functional currency of both projects should be amended to the currency
of the primary economic environment in which the projects are being
developed. Due to the stage of development at both projects the
operations are no longer regarded an integrated foreign operation
effective July 1, 2008.
The functional currency of the Burnstone project will therefore be South
African Rand (ZAR) and for the Hollister project the United States
Dollar (US$) will be the functional currency. The Canadian Dollar
remains the presentation currency for the Group.
The most significant change is that non-monetary assets will now be
converted at the closing rate, as opposed to historical rates, at the
reporting date and that exchange differences on conversion be accounted
for in equity in Accumulated Other Comprehensive Income, as opposed
through net income.
The amendment is prospective of nature and comparative information has
not been amended.
Effective August 8, 2008, the Company implemented the following
accounting policy:
(f) Long-term borrowings
Borrowings are initially recognized at fair value net of transaction
cost incurred and subsequently measured at amortized cost, comprising
original debt less principal payments and amortization, using the
effective yield method.
4. SEGMENT DISCLOSURE
The Company operates in a single reportable operating segment, the
exploration and development of mineral properties. Geographic
information is as follows:
Assets September 30 December31
2008 2007
Canada
Assets other than mineral property
interests 7,010,784 56,796,521
Mineral property interests 1 1
Tanzania
Assets other than mineral property
interests 2,233,326 -
Mineral property interests 31,905,505 -
United States
Assets other than mineral property
interests 23,267,719 5,890,010
Mineral property interests 93,365,126 95,156,279
South Africa
Assets other than mineral property
interests 21,216,822 48,212,597
Mineral property interests 131,153,274 123,257,650
329,313,058
Total assets 310,152,557
5. SUBSEQUENT EVENTS
Subsequent to September 30, 2008,
(a) Burnstone Mining Right
On October 28, 2008 the Department of Minerals and Energy of South
Africa ("DME") granted a mining right to the Company`s wholly owned
subsidiary, Southgold Exploration (Pty) Ltd ("Southgold"), to mine
gold, silver and aggregate in the Burnstone project area. The
mining right will be effective from the date the Environmental
Management Plan is approved by the DME, which has been scheduled
for December 11, 2008 as part of the process to register the mining
right in the name of Southgold. Development costs for this project
will be capitalized from this date and reviewed for impairment on
each reporting date thereafter.
(b) Off-balance sheet arrangements
On October 1, 2007 Investec advanced an amount of ZAR 200 million
to Tranter Burnstone as part of the Black Economic Empowerment
("BEE") transaction for the exclusive purpose of subscribing for
the Southgold shares.
The security for the loan comprised amongst others a loan guarantee
in terms of which N5C Resources Inc, N6C Resources Inc or Rodeo
Creek Gold Inc (all wholly-owned subsidiaries of the Company) is
obliged in the event of default by Tranter Burnstone on any of its
interest repayments to Investec at any time in the first four years
to lend not more than ZAR 80 million ($10 million) to Tranter
Burnstone.
The decrease in the Great Basin Gold share price resulted in the
underlying value of the investment held by Tranter Gold being less
than the secured loan and Investec Ltd requested Tranter to deposit
the short fall on the investment into a cash margin call account
during October 2008. Great Basin Gold was requested to deposit
their portion relating to the accrued interest of ZAR31 million ($4
million) into this margin account. Negotiations are underway with
Investec to re-negotiate the terms of the agreement and to amend
the requirement to deposit cash resources into the margin account.
The full set of financial statements and Management Discussion and Analysis
are available on Great Basin`s website: www.grtbasin.com
Approved by the Board of Directors
Ferdi Dippenaar Ronald W Thiessen
Director Director
Ground Floor, 138 West Street 1500 Royal Centre, 1055 West
Sandown, Johannesburg Georgia Street,
South Africa Vancouver, BC Canada V6E 4N7
Tel 011 301 1800 Toll Free 1 800 667?2114
Fax 011 301 1840
www.grtbasin.com
12 November 2008
Johannesburg
Sponsor
Nedbank Capital
Date: 12/11/2008 15:00:01 Produced by the JSE SENS Department.
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