| Tue 24 Feb 2009, 8:01 | | GBG - Great Basin Gold Ltd - Announces Public Offering |
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GBG
GBG
GBG - Great Basin Gold Ltd - Announces Public Offering
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 Gold" or the "Company")
GREAT BASIN GOLD LTD. ANNOUNCES PUBLIC OFFERING
February 23, 2009 - Vancouver, BC - Great Basin Gold Ltd. (the "Company")
(TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announced today that it has filed a
preliminary short form prospectus with Canadian securities regulators and a
related registration statement with the U.S. Securities and Exchange
Commission under the U.S.-Canada multi-jurisdictional disclosure system,
relating to a proposed marketed public offering of approximately C$125 million
of units. Each unit will be comprised of one common share and one-half of one
common share purchase warrant. The number of units to be distributed and the
price of each unit will be determined in the context of the market with final
terms to be determined at the time of pricing. A syndicate led by BMO Capital
Markets and RBC Capital Markets is acting as underwriters in connection with
the offering. The Company has granted to the underwriters an over-allotment
option to purchase up to that number of additional common shares and/or
warrants equal to 15% of the common shares and warrants sold pursuant to the
offering, exercisable at any time up to 30 days from the closing of the
offering.
The net proceeds from this offering will be used by the Company to fund the
development of the Company`s Burnstone project in South Africa and for general
corporate purposes. The offering is expected to close in early March 2009 and
is subject to receipt of all necessary regulatory and stock exchange
approvals.
A preliminary short form prospectus relating to the units has been filed in
all provinces and territories of Canada, for which the Company has obtained a
receipt, and a registration statement under the U.S.-Canada multi-
jurisdictional disclosure system has been filed with the U.S. Securities and
Exchange Commission but has not yet become effective. These securities may not
be sold nor may offers to buy be accepted prior to the issuance of a receipt
for the short form prospectus and the time the registration statement becomes
effective. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or province in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state or province. No offer to buy the securities can be
accepted and no part of the purchase price can be received until the
registration statement has become effective and any such offer may be
withdrawn or revoked without obligation or commitment of any kind at any time
prior to the notice of its acceptance given after the effective date.
Copies of the preliminary prospectus may be obtained from BMO Capital Markets,
Distribution Department, 1 First Canadian Place, B2 Level, Toronto, Ontario,
M5X 1H3 (tel: 416-363-6996 x224) or from RBC Capital Markets, Attention:
Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5H 2X4
(tel: 416-842-5349), or in the United States from BMO Capital Markets Corp.,
Attention: Lori Begley, 3 Times Square, 27th Floor, New York, New York, 10036
(tel: 212-885-4039) or from RBC Capital Markets Corporation, Attention:
Prospectus Department, Three World Financial Centre, 200 Vesey Street, 8th
Floor, New York, NY 10281-8098 (tel: 212-428-6670).
Ferdi Dippenaar
President and CEO
For additional details on Great Basin Gold Ltd. 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
Michael Curlook in North America +1 888 633 9332
Barbara Cano at Breakstone Group in the USA +1 646 452-2334
No regulatory authority has approved or disapproved the information contained
in this news release.
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, continuity of
mineralization, uncertainties related to the ability to obtain necessary
permits, licenses and title and delays due to third party opposition,
geopolitical uncertainty, changes in government policies regarding mining and
natural resource exploration and exploitation, 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: 24/02/2009 08:01:03 Produced by the JSE SENS Department.
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