VANCOUVER, April 6 /CNW/ - Great Basin Gold Ltd, ("Great Basin" or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) today announced that it has obtained final Credit approval for a US$47 million export finance facility ("the facility"), with the option to increase the facility through further syndication.
The facility will be provided by Credit Suisse Ag and will have a maximum term of 4 years from date of draw down, with interest and capital repayment commencing 9 months after draw down. The facility will bear interest at a margin of 4% over the USD LIBOR rate (currently 0.3%). The Company will have the option to retire the loan 12 months after draw down at no additional costs. The Burnstone project will be the guarantor for the facility.
The facility is only subject to the execution of customary loan and security documentation and includes conditions precedent usual for facilities of this nature. Execution of binding documentation and funding is targeted for on or before April 30, 2010.
Ferdi Dippenaar, CEO and President commented; "The Company received more than one financing offer and selected this facility which will provide us with flexibility in the delivery of the Burnstone project. The project is at an exciting phase of its development with good progress being made in the construction of the metallurgical plant and the development of underground infrastructure. Development on 41 Level of the vertical shaft has been completed and the sinking of the last 26 meters to shaft bottom has commenced."
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.
For further information: For further information: For additional details on Great Basin 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, (646) 452-2334