Wednesday April 22, 8:39 pm Eastern Time
Company Press Release
$5 Million Special Warrants Financing
VANCOUVER, British Columbia--(BUSINESS WIRE)--April 22, 1998-- Robert G. Hunter, chairman of Great Basin Gold Ltd. (VSE:GBG - news; NASDAQ:GBGLF - news) announces that First Marathon Securities Limited and Nesbitt Burns Inc. (collectively ''the Agents'') have agreed to place, on a best efforts basis, up to 2,500,000 Special Warrants at a price of $2.00 per Special Warrant, for aggregate proceeds of up to $5 million.
Each Special Warrant will convert, without further consideration and upon prospectus clearance in the relevant Canadian provinces, into a unit comprising one common share and one share purchase warrant to acquire an additional Great Basin common share exercisable at a price of $2.00 for a twelve month period.
If the weighted average closing price of Great Basin's common shares on the Vancouver Stock Exchange over 10 consecutive trading days is greater than $4.00, then the share purchase warrants shall expire 30 calendar days after the purchasers receive notice from Great Basin.
The Special Warrants will be privately placed with sophisticated investors in Canada and accredited investors in the United States. Proceeds from the offering will be used to finance exploration on Great Basin's two properties in Nevada, USA (Ivanhoe and Wilson-Independence) and for working capital.
If Great Basin does not receive receipts for the final prospectus from the applicable securities commissions in Canada within 120 days from closing, each Special Warrant shall be exercisable into 1.1 common shares and 1.1 share purchase warrants.
Closing is anticipated to occur on or about May 21, 1998. The Agents will be paid a fee, plus disbursements, for their services. The financing is subject to regulatory acceptance.
ON BEHALF OF THE BOARD
(signed)
Robert G. Hunter, Chairman
The Vancouver Stock Exchange has neither approved nor disapproved the information contained in this news release.
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Contact:
Great Basin Gold Ltd.
Robert G. Hunter, 604/684-6365 or 800/667-2114
hdgold.com |
