| Fri 27 Mar 2009, 9:40 | | GBG - Great Basin Gold Announces Exercise Of Over-Allotment Option |
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GBG
GBG
GBG - Great Basin Gold Announces Exercise Of Over-Allotment Option
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 EXERCISE OF OVER-ALLOTMENT OPTION
March 26, 2009 - Vancouver, British Columbia - Great Basin Gold Ltd. (the
"Company") (TSX: GBG; NYSE AMEX: GBG; JSE: GBG) announces that BMO Capital
Markets and RBC Capital Markets, on behalf of the underwriters, have exercised
the underwriters` over-allotment option to purchase an additional 15,000,000
common shares at a price of C$1.25 per common share and 7,500,000 warrants at
a price of C$0.10 per warrant, for gross proceeds to the Company of
C$19,500,000. 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 over-allotment option was granted
to the underwriters by the Company to cover over-allotments under the terms of
the Company`s public financing completed on March 13, 2009 and the exercise of
the over-allotment option brings the total gross proceeds raised from the
offering to C$149,500,000. A syndicate led by BMO Capital Markets and RBC
Capital Markets acted as underwriters in connection with the offering. Closing
of the over-allotment occurred today.
The net proceeds from the 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
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: 27/03/2009 09:40:02 Produced by the JSE SENS Department.
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