VANCOUVER, March 15, 2012 /PRNewswire/ - 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 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 in Canada.
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.
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.
SOURCE Great Basin Gold Ltd.
