Ferdi Dippenaar,
President & CEO,
GBG
 
Vancouver, Canada — MININGREVIEW.COM — 16 March 2009 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has completed its previously announced public offering of 100 million units at a price of C$1.30 per unit, resulting in gross proceeds of C$130 million (R1 billion).

A statement released here said the company had granted to the underwriters an over-allotment option, exercisable for a period of 30 days following closing of the offering, to purchase up to an additional 15 million common shares and/or 7.5million warrants to cover over-allotments, and for market stabilisation purposes. If exercised it would result in additional gross proceeds of C$19.5 million (R150 million).A syndicate led by BMO Capital Markets and RBC Capital Markets acted as underwriters for the offering.

The statement added that the net proceeds from this offering would be used by GBG to fund the development of the company’s Burnstone project in South Africa, and for general corporate purposes.

President and CEO Ferdi Dippenaar commented: “The support received for this financing shows that the market, like the management of Great Basin Gold, believes that there is significant value in our Burnstone gold project. With initial commercial production at Burnstone targeted for July 2010, and our Hollister Project in trial mining phase, the company is emerging as a significant gold producer.”