JOHANNESBURG (miningweekly.com) – TSX-, JSE- and NYSE-listed gold miner Great Basin Gold has announced the terms of its planned C$130-million equity offering, to further its Burnstone project, in South Africa.

The company would place 100-million units, each consisting of one common share and one-half of one common share purchase warrant, at C$1,30.

Each full warrant would entitle the holder to purchase a common share in the company at the price of C$1,60 a common share at any time before October 15, 2010.

The proceeds from the offering would be used by the company to fund the development of its Burnstone project, as well as for general corporate purposes.

“This is an important financing for Great Basin Gold, and we are pleased to note that this funding will be used in furtherance of achieving initial commercial production at the Burnstone property, targeted for July 2010,” Great Basin Gold president and CEO Ferdi Dippenaar said in a statement to shareholders.                                  

The offering would close on March 13.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.