A Vancouver gold company is looking for funds in Canada to develop its project in South Africa.
Great Basin Gold Ltd. (TSX:GBG) plans to raise $75 million to provide working capital for its Burnstone gold mine 80 kilometres southeast of Johannesburg. The mine poured its first batch of gold in October and is slated to produce approximately 150,000 ounces in 2011.
The funds will be raised in a bought deal with a syndicate of underwriters led by RBC Capital Markets that has agreed to buy 29.4 million common shares of the company at $2.55 per share. The company has also given the underwriters the option to buy an additional 15% of the offering.
The offering, subject to receiving all the necessary approvals from the TSX, is expected to close on February 23.
Great Basin Gold reported a nine-month revenue of $57 million and a net loss of $35.6 million for the period ending September 30, 2010.
Great Basin’s share price range during the past week: between $2.66 and $2.72; 52-week high: $3.32; 52-week low: $1.63.