ACKNOWLEDGES WALTER
SEGSWORTH'S PAST SERVICE
VANCOUVER, March 16 /PRNewswire/ - Great Basin Gold Ltd.
("Great Basin Gold" or the "Company"), (TSX: GBG) (NYSE Amex: GBG)
(JSE: GBG) today announced that it has repaid the 2008 Senior
Secured Notes ("Notes") with the proceeds of the previously
announced Term Loan Facility from Credit Suisse AG. The facility
was increased from US$60 million to US$70
million to maximize leverage from this low-cost facility.
The facility has been fully drawn down and has a term of 4 years,
is repayable in quarterly installments commencing September 2011, and bears interest at a premium
of 3.75% over the 3 month US LIBOR rate. It is secured by the
Company's Nevada assets. As part
of the facility, the Company executed a zero-cost-collar hedging
program, consisting of a total of 117,500 ounces of gold spread
over a 4 year term commencing in January
2012. The call option price was fixed at US$1,930 per ounce with the put option at
US$1,050 per ounce and as long as
gold trades within these prices there is no cash cost to the
hedge.
The Company also announces that it has now filed
its consolidated annual audited financial statements and related
Management's Discussion and Analysis for the year ended
December 31, 2010 on SEDAR.com and on
the Company's website. The audited financial results are identical
to the preliminary results released on February 24, 2011.
In other corporate news, Mr. Walter Segsworth has resigned as a director of
the Company. The Board is in the process of nominating additional
directors for the June 2011
shareholders meeting which will include two women candidates with
solid financial and mining backgrounds. The proposed candidates
will bring a wealth of experience and fresh views to the Board and
will help ensure a better gender balance on it.
Ronald Thiessen,
Chairman, stated "On behalf of the Board, I would like to
personally thank Walter for his several years of hard work and
thoughtful insight into development and operational issues. We wish
him all the best in his other endeavours."
Ferdi Dippenaar,
CEO, commented "We were very pleased with the speed and efficiency
with which Credit Suisse was able to finalize the loan and then
upsize it. This low-cost and flexible facility is a significant
improvement in our cost of capital over the burden of the 2008
Senior Secured Notes."
Great Basin Gold is a mining company engaged in
the exploration and development of gold properties. The Company is
currently focused on its two emerging mines in the world's two
richest gold regions. The Hollister gold mine is located on the
Carlin Trend in Nevada, USA and
the Burnstone gold mine is located in the Witwatersrand goldfield
of South Africa.
No regulatory authority has approved or
disapproved the information contained in this news release.
For more information on the Company and the
risks inherent in its business, 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.