| Fri 9 Mar 2012, 8:02 | | GBG - Great Basin Gold Limited - Great Basin Gold announces C$50 Million |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold announces C$50 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 C$50 Million Bought Deal Public Offering of
Common Shares
Not for distribution to U.S. news wire services or dissemination in the
United States
March 8, 2012, 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 61,000,000 common shares of the Company at a price
of C$0.82 per common share for aggregate gross proceeds of approximately
C$50 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 towards working capital for the
development and ramp up of the Burnstone Mine.
The Offering is scheduled to close on or about March 28, 2012 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.
Ferdi Dippenaar, Great Basin Gold President and CEO, commented: "The Company
has reviewed its cash flow forecast and based on the significant amount of
progress and underground development already completed and underway at
Burnstone, the resolution of the water issues affecting the mine, and
development rates at target levels, we believe the fundraising is sufficient
to fund working capital at Burnstone until Q3 2012 when we expect the mine
to be cash flow positive.
Equipment and mining teams required to achieve the target levels of
production are in place and long hole stoping is performing in line with
expectations."
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 March
14, 2012. 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).
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
+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.
Canada
9 March 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 09/03/2012 08:02:33 Produced by the JSE SENS Department.
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