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Posts tagged ‘Great Basin Gold Ltd (GBG)’

Great Basin announces $50M Private Placement for SA Burnstone Gold Mine

March 9th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGreat 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.

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Contact:
North America
Michael Curlook
Investor Services
888.633.9332

South Africa
Tsholo Serunye
Investor Services
27.0.11.301.1800

by Greg Klein

Great Basin increases Reserves, LOM Estimates; secures $60M Loan

February 2nd, 2011

Great Basin Gold Ltd TSX:GBG announced increases for both its Hollister Project and Burnstone Mine Mineral Reserve and life-of mine estimates. Great Basin has also received credit committee approval for a $60 million term loan financing from Credit Suisse AG, the proceeds of which will be used to repay the high cost Senior Secured Notes issued during the 2008 credit crisis.

CEO Ferdi Dippenaar commented, “Our ongoing evaluations of the two ore bodies, which encompass delineation drilling and results from trial mining, continue to confirm the value of the Hollister and Burnstone properties, as evidenced in both increased reserves and increased confidence in our measurements. Production from trial mining at Hollister is expected to remain at the level of 110,000 recovered-AuEq oz/annum for the near future. We have conservatively estimated production at the Burnstone mine, which will experience its first full year of mining in 2011, and have focused the management team on prioritizing on-reef development to ensure that this plus 25-year life, world class project has a solid foundation to deliver successful production in the future.

“With the commitment of the Credit Suisse facility, Great Basin Gold now has the necessary funds to retire the US$52 million Senior Secured Notes, a debt facility put in place in November 2008. This both reduces our cost of capital and provides us better financial coordination with a single corporate lender.”

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Contact:
Michael Curlook
Manager, Inverstor Relations
888.633.9332

Read More about Great Basin Gold

by Ted Niles