Vancouver, Canada — MININGREVIEW.COM — 07 April 2010 – Great Basin Gold Limited (GBG) – an emerging mid-tier gold producer listed on the Toronto and American stock exchanges – has announced that it has obtained final credit approval for a US$47 million (R350 million) export finance facility with the option to increase the facility through further syndication.
A statement released here revealed that the facility would be provided by Credit Suisse Ag and would have a maximum term of four years from date of draw-down, with interest and capital repayment commencing nine months after draw-down. The facility would bear interest at a margin of 4% over the USD LIBOR rate (currently 0.3%), and the company would have the option to retire the loan 12 months after draw-down at no additional costs. It added that the Burnstone project would 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 30 April 30 2010.
GBG president and CEO Ferdi Dippenaar 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.”