| Fri 13 Mar 2009, 15:34 | | GBG - Great Basin Gold - Completes C$130 million equity financing |
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GBG
GBG
GBG - Great Basin Gold - Completes C$130 million equity financing
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. COMPLETES C$130 MILLION EQUITY FINANCING
March 13, 2009 - Vancouver, British Columbia - Great Basin Gold Ltd. (the
"Company") (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announces that it has
completed its previously announced public 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.
Ferdi Dippenaar, President and CEO, commented: "The support received for this
financing shows that the market, like the management of Great Basin Gold,
believes that there is significant value in our Burnstone gold project. With
initial commercial production at Burnstone targeted for July 2010 and our
Hollister Project in trial mining phase, the Company is emerging as a
significant gold producer."
Ferdi Dippenaar
President and CEO
Copies of the final short form 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), 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).
This news release shall not constitute an offer to sell or a solicitation of an
offer to buy common shares nor shall there be any sale of such securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction.
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: 13/03/2009 15:34:01 Produced by the JSE SENS Department.
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