| Thu 19 Nov 2009, 17:02 | | GBG - Great Basin Gold - Announces closing of C$126.5 million bought deal public |
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GBG
GBG
GBG - Great Basin Gold - Announces closing of C$126.5 million bought deal public
offering of convertible debentures
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")
Not for distribution to U.S. news wire services or dissemination in the United
States
GREAT BASIN GOLD ANNOUNCES CLOSING OF C$126.5 MILLION BOUGHT DEAL PUBLIC
OFFERING OF CONVERTIBLE DEBENTURES
November 19, 2009, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that it has
closed its previously announced bought deal offering of senior unsecured
convertible debentures (the "Debentures") with a syndicate of underwriters led
by RBC Capital Markets and including, BMO Capital Markets, Raymond James Ltd.
and Thomas Weisel Partners Canada Inc (the "Offering"). The underwriters have
exercised their over-allotment option resulting in aggregate gross proceeds of
C$126.5 million.
Ferdi Dippenaar, President and CEO, commented: "We are pleased to have
completed a very successful transaction that provides Great Basin Gold with the
capital it requires to fully develop the Burnstone project." Net proceeds from
the Offering will be used for repayment of amounts drawn down on the Company`s
project finance facility, development of the Company`s Burnstone project
(replacing the proposed Burnstone project finance facility) and general
corporate purposes.
The Debentures are senior unsecured obligations of the Company and are
guaranteed on a senior unsecured basis by each subsidiary through which the
Company holds title to the Burnstone project. The Debentures will rank pari
passu with all existing and future senior unsecured indebtedness of Great Basin
Gold, except as it relates to the subsidiary guarantees above. The Debentures
will be effectively subordinated to all existing and any future secured debt of
the Company to the extent of the assets securing such debt.
The Debentures will mature on November 30, 2014 and will accrue interest at the
rate of 8.0% per annum payable on a semi-annual basis. At the holder`s option,
the Debentures may be converted into common shares of Great Basin Gold at any
time up to the maturity date. The conversion price will be C$2.15 for each
common share, subject to adjustment in certain circumstances.
The Debentures will not be redeemable before November 30, 2012. From November
30, 2012 through to the maturity date, Great Basin Gold may, at its option,
redeem the Debentures, in whole or in part, at par plus accrued and unpaid
interest provided that the weighted average trading price of the common shares
on the Toronto Stock Exchange for the 20 consecutive trading days ending five
trading days prior to the date on which notice of redemption is provided is at
least C$2.90.
The securities offered have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from the registrations
requirements of such Act. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy the securities in any jurisdiction
in which such offer, sale or solicitation would be unlawful.
Copies of the final short form prospectus may be obtained from RBC Capital
Markets, Attention: Distribution Centre, 277 Front St. W., 5th Floor, Toronto,
Ontario M5H 2X4 (tel: 416-842-5349).
For additional details on Great Basin Gold 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 (646) 452 2334
No regulatory authority has approved or disapproved the information contained in
this news release.
Cautionary and Forward Looking Statement Information
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 financing events or technical
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 financial market conditions,
metals 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, 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 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: 19/11/2009 17:02:01 Produced by the JSE SENS Department.
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