Great Basin Gold Limited Insolvency Update
May 22, 2013 17:48:00 (ET)
VANCOUVER, May 22, 2013 /PRNewswire via COMTEX/ -- Great Basin Gold Limited (the "Company") announcesthat further to its news release of April 29, 2013 the sale of its Nevada assets and operations including the Hollister trial mine and Esmeralda millhas completed substantially on the terms disclosed in that news release except that the term of the net profits royalty may be terminated after five years in certain events.
Great Basin Gold Limited Updates Insolvency Proceedings
VANCOUVER, April 29, 2013 /CNW/ - Great Basin Gold Limited (the "Company") announces that its Hollister trial mining assets, mineral claims and ore processing operations in Nevada have been tentatively disposed of in an auction conducted pursuant to US Chapter 11 proceedings. The proceeds of Hollister sale were US$15 million plus a 15% net profits royalty payable to the bankrupt US subsidiaries' estate to a maximum of $90 million over an up to nine year period. The tentative terms of sale of Hollister remain subject to negotiation of definitive closing documentation and the approval of the US Bankruptcy Court which will hear the matter May 2, 2013. Completion of the sale has been tentatively set for not later than May 17, subject to Bankruptcy Court approval, receipt of various permits and other customary closing conditions. Pursuant to the bid procedures that authorized the auction, the bidder that finished second in the process is bound to keep its back-up offer open for a period not to exceed the earlier of the closing of the winning bid at auction or a certain number of days. A copy of the asset purchase agreement governing the sale of the Hollister assets will be filed at www.sedar.com.
The Company understands that bids are being received by the Business Rescue Practitioner for the Burnstone Mine in South Africa pursuant to the business rescue insolvency proceedings in that country. The nature of these bids will be disclosed when the information is received by the Company.
The Company also announces that as a consequent upon the proceedings to dispose of the Company's principal assets it will be unable to complete audit financial statements and related disclosure for the deadlines of April 30, 2013. The Company does not have sufficient visibility about its financial position at this time to be able to predict if it will be able complete an audit at any future time.
SOURCE: Great Basin Gold Ltd.
Great Basin Gold Limited's Nevada Subsidiaries File Chapter 11 Bankruptcy Proceedings in United States
Rodeo Creek Gold Inc. owner of the Hollister Trial-Mine to seek to sell Operations
ELKO, NV, Feb. 25, 2013 /CNW/ - Great Basin Gold Limited's subsidiary Rodeo Creek Gold Inc. ("Rodeo Creek"), and certain of its affiliates (the "companies"), entered US Bankruptcy Code Chapter 11 restructuring proceedings in Nevada on February 25, 2013. The companies expect no interruptions in day-to-day business and remain focused on continuing their trial mining operations at the Hollister gold mine and related ore milling at Esmeralda.
Through this legal process, Rodeo Creek and its affiliates will seek to auction their assets and operations including the Hollister mine and the Esmeralda mill as a going concern, while stabilizing the operations and maintaining employment and current benefits programs.
In order to ensure continued access to funds sufficient to maintain operations and pay vendors, the filing allows the company to seek court approval for a $9 million Debtor-in-Possession Facility. The companies believe that this facility will allow for operation to continue during the Chapter 11 proceeding, and include funds sufficient to pay vendors and employees in the ordinary course of business.
The filing in Nevada federal bankruptcy court on Monday was made after an extended planning process designed to seek a smooth transition for employees and vendors. Various First-Day motions are were filed on February 25, 2013 seeking to continue employee payroll and health benefits; the fulfillment of certain pre-filing obligations; the continuation of Rodeo Creek's cash management system; authority to enter into a new debtor-in-possession financing facility. The companies anticipate their First-Day Motions will be approved in the next few days. The companies also filed proposed bidding procedures, beginning the process of a Chapter 11 sale of Nevada operations.
Great Basin Gold Limited is itself in creditor protection proceedings in Canada. It owns 100% of Rodeo Creek and the other subsidiaries involved in the Chapter 11 filings, and also owns certain as well as South African subsidiaries which have sought creditor protection in South Africa in respect of Burnstone mine operations. |
