GREAT
BASIN GOLD LTD. ANNOUNCES PUBLIC OFFERING
February 23, 2009 - Vancouver, BC
- Great Basin Gold Ltd.
(the "Company") (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announced
today that it has filed a preliminary short form prospectus with Canadian
securities regulators and a related registration statement with the U.S.
Securities and Exchange Commission under the U.S.-Canada multi-jurisdictional
disclosure system, relating to a proposed marketed public offering of approximately
C$125 million of units. Each unit will be comprised of one common share
and one-half of one common share purchase warrant. The number of units to
be distributed and the price of each unit will be determined in the context
of the market with final terms to be determined at the time of pricing.
A syndicate led by BMO Capital Markets and RBC Capital Markets is acting
as underwriters in connection with the offering. The Company has granted
to the underwriters an over-allotment option to purchase up to that number
of additional common shares and/or warrants equal to 15% of the common shares
and warrants sold pursuant to the offering, exercisable at any time up to
30 days from the closing of the offering.
The net proceeds from this offering will be used by the Company to fund
the development of the Company's Burnstone project in South Africa and
for general corporate purposes. The offering is expected to close in early
March 2009 and is subject to receipt of all necessary regulatory and stock
exchange approvals.
A preliminary short form prospectus relating to the units has been filed
in all provinces and territories of Canada, for which the Company has obtained
a receipt, and a registration statement under the U.S.-Canada multi-jurisdictional
disclosure system has been filed with the U.S. Securities and Exchange Commission
but has not yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the issuance of a receipt for the short
form prospectus and the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of these securities in any
state or province in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such state or province. No offer to buy the securities can be accepted and
no part of the purchase price can be received until the registration statement
has become effective and any such offer may be withdrawn or revoked without
obligation or commitment of any kind at any time prior to the notice of
its acceptance given after the effective date.
Copies of the preliminary prospectus may be obtained from BMO Capital Markets,
Distribution Department, 1 First Canadian Place, B2 Level, Toronto, Ontario,
M5X 1H3 (tel: 416-363-6996 x224) or from RBC Capital Markets, Attention:
Distribution Centre, 277 Front St. W., 5th Floor, Toronto, Ontario M5H 2X4
(tel: 416-842-5349), or in the United States from BMO Capital Markets Corp.,
Attention: Lori Begley, 3 Times Square, 27th Floor, New York, New York,
10036 (tel: 212-885-4039) or from RBC Capital Markets Corporation, Attention:
Prospectus Department, Three World Financial Centre, 200 Vesey Street, 8th
Floor, New York, NY 10281-8098 (tel: 212-428-6670).
Ferdi Dippenaar
President and CEO
For additional details on Great Basin Gold Ltd. and its gold properties,
please visit the Company's website at www.grtbasin.com or contact Investor
Services:
Tsholo Serunye in South Africa +27
(0)11 301 1800
Michael Curlook in North America +1
888 633 9332
Barbara Cano at Breakstone Group in the USA +1 646 452-2334
No regulatory authority has approved or disapproved the information contained
in this news release.
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 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 market 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, 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.