VANCOUVER, Dec. 7, 2011 /PRNewswire/ - Great Basin Gold Ltd,
("Great Basin" or the "Company"), (TSX: GBG) (NYSE Amex: GBG) (JSE:
GBG) today announced that all parties have executed the Term
Facility Agreement for the previously announced US$150 million finance facility (the "facility")
provided by Credit Suisse AG and Standard Chartered Bank on a
co-arranger basis. Following the fulfillment of customary
conditions precedent which include finalization of ancillary
agreements, counsel opinions and execution of the restructured Zero
Cost Collar ("ZCC") hedge agreement, the transaction is expected to
close, with funds expected to be available for draw down, on or
before December 15, 2011.
The facility, for which the Burnstone project is
primary security, has a maximum term of 5 years from date of draw
down, with capital repayment commencing March 15, 2013 and bears interest at a margin of
4% over the USD LIBOR rate. Proceeds from this facility will be
used to settle the outstanding principle amount of Term loan 1
(refer interim financial statements for the period ending
September 30, 2011) and amounts drawn
down under the standby debt facility (closed in August 2011).
Ferdi Dippenaar,
CEO and President commented; "We are extremely pleased with the
speed and efficiency with which this low cost facility was arranged
and executed by the lenders. Following the operational delays the
credit facility provides the funding required to finance the
additional development to help enable the delivery of the
previously announced 2012 production build-up plan at
Burnstone."
For additional details on Great Basin and its
gold properties, please visit the Company's website at
www.grtbasin.com or contact Investor Services:
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
possible future commercial production, reserve potential,
exploration drilling results, development, feasibility or
exploitation activities and events or developments that Great Basin
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 market prices, exploitation and exploration successes, and
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 those 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.