| Wed 16 Mar 2011, 14:30 | | GBG - Great Basin gold Repays Senior Secured Notes |
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GBG
GBG
GBG - Great Basin gold Repays Senior Secured Notes
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 REPAYS SENIOR SECURED NOTES
ACKNOWLEDGES WALTER SEGSWORTH`S PAST SERVICE
March 16, 2011, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced that it
has repaid the 2008 Senior Secured Notes ("Notes")with the proceeds of the
previously announced Term Loan Facility from Credit Suisse AG. The facility
was increased from US$60 million to US$70million to maximize leverage from
this low-cost facility. The facility has been fully drawn down and has a term
of 4 years, is repayable in quarterly installments commencing September 2011,
and bears interest at a premium of 3.75% over the 3 month US LIBOR rate. It
is secured by the Company`s Nevada assets. As part of the facility, the
Company executed a zero-cost-collar hedging program, consisting of a total of
117,500 ounces of gold spread over a 4 year term commencing in January 2012.
The call option price was fixed at US$1,930 per ounce with the put option at
US$1,050 per ounce and as long as gold trades within these prices there is no
cash cost to the hedge.
The Company also announces that it has now filed its consolidated annual
audited financial statements and related Management`s Discussion and Analysis
for the year ended December 31, 2010 on SEDAR.com and on the Company`s
website. The audited financial results are identical to the preliminary
results released on February 24, 2011.
In other corporate news, Mr. Walter Segsworth has resigned as a director of
the Company. The Board is in the process of nominating additional directors
for the June 2011 shareholders meeting which will include two women
candidates with solid financial and mining backgrounds. The proposed
candidates will bring a wealth of experience and fresh views to the Board and
will help ensure a better gender balance on it.
Ronald Thiessen, Chairman, stated "On behalf of the Board, I would like to
personally thank Walter for his several years of hard work and thoughtful
insight into development and operational issues. We wish him all the best in
his other endeavours."
Ferdi Dippenaar, CEO, commented "We were very pleased with the speed and
efficiency with which Credit Suisse was able to finalize the loan and then
upsize it. This low-cost and flexible facility is a significant improvement
in our cost of capital over the burden of the 2008 Senior Secured Notes."
Great Basin Gold is a mining company engaged in the exploration and
development of gold properties. The Company is currently focused on its two
emerging mines in the world`s two richest gold regions. The Hollister gold
mine is located on the Carlin Trend in Nevada, USA and the Burnstone gold
mine is located in the Witwatersrand goldfield of South Africa.
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.
For more information on the Company and the risks inherent in its business,
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.
Sponsor
Nedbank Capital
Date: 16/03/2011 14:30:01 Produced by the JSE SENS Department.
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