Wrap Text
GBG - Great Basin Gold Limited - Terminates bought deal and announces new
bought deal
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 TERMINATES BOUGHT DEAL AND ANNOUNCES NEW BOUGHT DEAL
Not for distribution to U.S. news wire services or dissemination in the United
States
March 15, 2012, Vancouver, BC - Great Basin Gold Ltd. ("Great Basin Gold" or
the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that the
Company and the syndicate of underwriters led by RBC Capital Markets (the
"Underwriters") have agreed to terminate the previously announced public
offering. The Company and the Underwriters have entered into a new agreement
with respect to a public offering, pursuant to which the Underwriters have
agreed, on a bought deal basis, to buy 66,700,000 units of the Company (the
"Units"), at a price of $0.75 per Unit, for aggregate gross proceeds of
approximately $50 million (the "Offering"), by way of a short form prospectus.
Each unit will consist of one common share of Great Basin Gold (a "Common
Share") and one half of a purchase warrant (each whole warrant, a "Warrant").
Each Warrant will be exercisable for a period of 2 years following the closing
of the Offering at an exercise price of $0.90 per Warrant. The Company has
granted the underwriters an over-allotment option to purchase additional Units
up to 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.
A preliminary short-form prospectus relating to the offering will be filed
shortly with Canadian securities regulatory authorities. Closing of the
offering is expected to occur on or about March 30, 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.
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 16,
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.
15 March 2012
Johannesburg
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 16/03/2012 07:05:07 Supplied by www.sharenet.co.za
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