| Wed 4 Mar 2009, 15:00 | | GBG - Great Basin Gold Announces Pricing Of C$130 Million Equity Offering |
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GBG
GBG
GBG - Great Basin Gold Announces Pricing Of C$130 Million Equity Offering
GREAT BASIN GOLD LTD
(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")
GREAT BASIN GOLD LTD. ANNOUNCES PRICING OF C$130 MILLION EQUITY OFFERING
March 4, 2009 - Vancouver, British Columbia - Great Basin Gold Ltd. (the
"Company") (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announces that it has
priced an offering of 100,000,000 units at a price of C$1.30 per unit resulting
in gross proceeds of C$130,000,000. Each unit is comprised of one common share
and one-half of one common share purchase warrant. Each full warrant will
entitle the holder to purchase a common share of the Company at a price of
C$1.60 at any time before 5:00 p.m. (Vancouver time) on October 15, 2010. The
Company has granted to the underwriters an over-allotment option, exercisable
for a period of 30 days following closing of the offering, to purchase up to an
additional 15,000,000 common shares and/or 7,500,000 warrants to cover over-
allotments and for market stabilization purposes, which if exercised would
result in additional gross proceeds of C$19,500,000. A syndicate led by BMO
Capital Markets and RBC Capital Markets acted as underwriters in connection with
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 on or about March 13, 2009
subject to customary closing conditions and final regulatory approvals.
Ferdi Dippenaar, President and CEO, commented: "This is an important financing
for Great Basin Gold, and we are pleased to note that this funding will be used
in furtherance of achieving initial commercial production at the
Burnstone Property, targeted for July 2010."
A preliminary short form prospectus relating to the offer of the units has been
filed in all provinces and territories of Canada and a registration statement
relating to the offer of the units has been filed with the U.S. Securities and
Exchange Commission under the U.S.-Canada multi-jurisdictional disclosure
system, 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 final
short form prospectus from all applicable Canadian securities regulators and in
the United States prior to 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 final short form prospectus, when receipted, 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), and copies of the registration statement may be
obtained 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: 04/03/2009 15:00:02 Produced by the JSE SENS Department.
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