Rodeo Creek Gold Inc. owner of the Hollister Trial-Mine to seek to sell
ELKO, NV, Feb. 25, 2013 /CNW/ - Great Basin Gold Limited's subsidiary
Rodeo Creek Gold Inc. ("Rodeo Creek"), and certain of its affiliates
(the "companies"), entered US Bankruptcy Code Chapter 11 restructuring
proceedings in Nevada on February 25, 2013. The companies expect no
interruptions in day-to-day business and remain focused on continuing
their trial mining operations at the Hollister gold mine and related
ore milling at Esmeralda.
Through this legal process, Rodeo Creek and its affiliates will seek to
auction their assets and operations including the Hollister mine and
the Esmeralda mill as a going concern, while stabilizing the operations
and maintaining employment and current benefits programs.
In order to ensure continued access to funds sufficient to maintain
operations and pay vendors, the filing allows the company to seek court
approval for a $9 million Debtor-in-Possession Facility. The companies
believe that this facility will allow for operation to continue during
the Chapter 11 proceeding, and include funds sufficient to pay vendors
and employees in the ordinary course of business.
The filing in Nevada federal bankruptcy court on Monday was made after
an extended planning process designed to seek a smooth transition for
employees and vendors. Various First-Day motions are were filed on
February 25, 2013 seeking to continue employee payroll and health
benefits; the fulfillment of certain pre-filing obligations; the
continuation of Rodeo Creek's cash management system; authority to
enter into a new debtor-in-possession financing facility. The companies
anticipate their First-Day Motions will be approved in the next few
days. The companies also filed proposed bidding procedures, beginning
the process of a Chapter 11 sale of Nevada operations.
Great Basin Gold Limited is itself in creditor protection proceedings in
Canada. It owns 100% of Rodeo Creek and the other subsidiaries
involved in the Chapter 11 filings, and also owns certain as well as
South African subsidiaries which have sought creditor protection in
South Africa in respect of Burnstone mine operations.
SOURCE: Great Basin Gold Ltd.
For further information:
For additional information about Great Basin Gold Limited, please visit the Company's website at www.grtbasin.com or contact email@example.com. Other information about Great Basin Gold Limited is available in the Company's annual Form 40-F filing with the United States Securities and Exchange Commission www.sec.gov and home jurisdiction filings that are available at www.sedar.com.