| Thu 15 Mar 2012, 7:30 | | GBG - Great Basin Gold Limited - Great Basin Gold provides Tranter update |
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GBG
GBG
GBG - Great Basin Gold Limited - Great Basin Gold provides Tranter update
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 PROVIDES TRANTER UPDATE
March 14, 2012, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) in order provide
additional clarification with regards to its Black Economic Empowerment
partner, Tranter Burnstone (Pty) Ltd. ("Tranter"), which is owned by
historically disadvantaged South Africans ("HDSA"), has been notified that
Tranter is currently in default of the requirements of their loan agreement
with Investec Bank Ltd ("Investec") under which it borrowed ZAR 200 million
($27 million) to partly fund the purchase of 19,938,650 treasury common shares
in Great Basin Gold in 2007.
The default is due to an approximate ZAR 45 million ($6 million) unfunded cash
margin call as a consequence of the decline in the value of the Great Basin
Gold shares serving as collateral for the loan. Of the Company`s existing
guarantee of R140 million ($19 million), ZAR 14 million ($1.82 million)
remains available to meet the unfunded cash margin.
The Company is seeking, through ongoing discussions with Investec and Tranter,
to assist Tranter to remedy their default position and meet their future loan
obligations. Whilst the outcome of the discussions is uncertain, the Company
does not expect the outcome of these discussions to affect its current
compliance with the Mining Charter or near term cash flow.
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
negotiations in respect of restructuring the Tranter Loan, 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.
15 March 2012
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 15/03/2012 07:30:07 Produced by the JSE SENS Department.
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