Great Basin Gold repays senior secured notes
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
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.
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.
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."
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
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.
regulatory authority has approved or disapproved the information contained in
this news release.
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.