Great Basin Gold Ltd TSX:GBG announced a bought-deal private placement of 61 million common shares at $0.82 per share for approximately $50 million. The company has granted an over-allotment option to buy additional shares up to 15% of the offering for 30 days after the closing on or about March 28, 2012. Proceeds will be used for the development and ramp-up of the Burnstone Mine.
Burnstone is located in the South Rand area of the Witwatersrand Goldfields in Mpumalanga Province, South Africa. Commercial production began in February 2011. The company plans production ramp-up over two years to 254,000 gold ounces a year at a cash cost of $579 an ounce over a 25-year mine life.
by Greg Klein