| Wed 7 Dec 2011, 15:30 | | GBG - Great Basin Gold Limited - Great Basin Gold executes us$150 million credit |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold executes us$150 million credit
facility
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")
GREAT BASIN GOLD EXECUTES US$150 MILLION CREDIT FACILITY
December 7, 2011, Vancouver, BC - Great Basin Gold Ltd, ("Great Basin" or the
"Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced that all
parties have executed the Term Facility Agreement for the previously announced
US$150 million finance facility (the "facility") provided by Credit Suisse AG
and Standard Chartered Bank on a co-arranger basis. Following the fulfillment of
customary conditions precedent which include finalization of ancillary
agreements, counsel opinions and execution of the restructured Zero Cost Collar
("ZCC") hedge agreement, the transaction is expected to close, with funds
expected to be available for draw down, on or before December 15, 2011.
The facility, for which the Burnstone project is primary security, has a maximum
term of 5 years from date of draw down, with capital repayment commencing March
15, 2013 and bears interest at a margin of 4% over the USD LIBOR rate. Proceeds
from this facility will be used to settle the outstanding principle amount of
Term loan 1 (refer interim financial statements for the period ending September
30, 2011) and amounts drawn down under the standby debt facility (closed in
August 2011).
Ferdi Dippenaar, CEO and President commented; "We are extremely pleased with the
speed and efficiency with which this low cost facility was arranged and executed
by the lenders. Following the operational delays the credit facility provides
the funding required to finance the additional development to help enable the
delivery of the previously announced 2012 production build-up plan at
Burnstone."
For additional details on Great Basin 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 9223
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 possible future commercial production, reserve potential,
exploration drilling results, development, feasibility or exploitation
activities and events or developments that Great Basin 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, 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.
Johannesburg
7 December 2011
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 07/12/2011 15:30:01 Produced by the JSE SENS Department.
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