JOHANNESBURG (miningweekly.com) – Canadian junior gold-miner Great Basin Gold has filed a preliminary short form prospectus with the Canadian securities regulators and the US securities exchange, relating to a proposed marketed public offering of about C$125-million of units.

The Johannesburg and Toronto-listed Great Basin plans to use the proceeds to fund the development of its Burnstone project, in the Witwatersrand area of South Africa, it said in a statement on Tuesday.

Earlier in the month, Great Basin reported that it expected to wrap up the financing for the mine by the end of this month. In 2008, the company spent C$37-million at Burnstone, where the permanent headgear at the number one vertical shaft had been successfully erected. 

Capital investment companies BMO Capital Markets and the RBC Capital Markets were acting as underwriters for the offering, and Great Basin has granted the companies an over-allotment option to purchase additional common shares that would equal 15% of the common shares and warrants sold pursuant to the offering.

The number of units to be distributed, and the price of each unit would be determined in the context of the market, with the final terms to be determined at the time of pricing.

Great Basin is also owns the Hollister project on the Carlin trend in Nevada, where it has started to produce gold from trial mining.

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