| Thu 3 Feb 2011, 14:32 | | GBG - Great Basin Gold Limited - Great Basin Gold Announces $75 Million |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold Announces $75 Million
Bought Deal Public Offering of Common Shares
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" or "the Company")
Great Basin Gold Announces $75 Million Bought Deal Public Offering of Common
Shares
Not for distribution to US news wire services or dissemination in the United
States
February 2, 2011, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold"
or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) is pleased to
announce that it has entered into an agreement with a syndicate of
underwriters led by RBC Capital Markets pursuant to which the underwriters
have agreed to, on a bought deal basis, buy 29,415,000 common shares of the
Company at a price of $2.55 per common share for aggregate gross proceeds of
$75.0 million (the "Offering"), by way of a short form prospectus. The
Company has granted the underwriters an over-allotment option to purchase up
to an additional 15% of the Offering, for a period of 30 days following the
closing.
Net proceeds from the Offering will be used for working capital to support
the ramp up at Burnstone and to advance exploration activities at identified
exploration targets at Hollister. Working capital for Burnstone includes
additional on-reef development required by the preferred Long Hole Stoping
mining method that is expected to accelerate and enhance delivery of planned
production in the medium term.
The Offering is scheduled to close on or about February 23, 2011 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock
Exchange.
Under the terms of the agreement, the Company is required to file a
preliminary short-form prospectus and obtain a receipt from the securities
regulatory authorities in all provinces of Canada, except Quebec, by
February 8, 2011. 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 preliminary 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).
Great Basin is a mining company engaged in the exploration and development
of gold properties. The Company is currently focused on bringing two mines
in the world`s two richest gold producing regions into production. The
Hollister gold project is located on the Carlin Trend in Nevada, USA and the
Burnstone gold mine is located in the Witwatersrand Basin goldfield of South
Africa.
Ferdi Dippenaar
President and CEO
For additional details on Great Basin and its gold properties, please visit
the Company`s website at www.grtbasin.com or contact Investor Services at:
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.
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.
Johannesburg
Thursday, 3 February 2011
Sponsor
Nedbank Capital
Date: 03/02/2011 14:32:02 Produced by the JSE SENS Department.
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