TORONTO (miningweekly.com) - Gold-miner Great Basin Gold has completed its offering of shares and warrants, and raised gross proceeds of C$130-million to fund the development of the company's Burnstone project, in South Africa, it announced on Friday.

Great Basin sold 100-million units, each comprising one common share and one half of a share-purchase warrant, at C$1,30 apiece.

The firm has also given its underwriters an overallotment option on another 15-million shares and 7,5-million warrants, which, if exercised, would increase the total raised by C$19,5-million.

"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," said CEO Ferdi Dippenaar.

"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."

Great Basin is conducting 'trial mining' operations at Hollister, in Nevada, while it awaits final permitting approval for the mine.

A syndicate led by BMO Capital Markets and RBC Capital Markets acted as underwriters in connection with the offering.

Shares in Great Basin Gold slid 0,76% on Friday, to C$1,30 apiece by 12:36 in Toronto.

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