reat Basin Gold Announces C$50 Million Bought Deal Public Offering of Common
Shares
VANCOUVER, March 8, 2012 /PRNewswire via COMTEX/ -- Great Basin Gold Ltd. ("Great
Basin Gold" or the "Company"), (CA:GBG)(GBG) (jse:GBG) is pleased to announce
that it has entered into an agreement with a syndicate of underwriters pursuant
to which the underwriters have agreed to, on a bought deal basis, buy 61,000,000
common shares of the Company at a price of C$0.82 per common share for aggregate
gross proceeds of approximately C$50 million (the "Offering"), by way of a short
form prospectus. The Company has granted the underwriters an over-allotment
option to purchase up to an additional 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.
The Offering is scheduled to close on or about March 28, 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 14, 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. |
