Great Basin Gold Ltd.
TSX : GBG
AMEX : GBN

Great Basin Gold Ltd.

April 12, 2007 14:40 ET

Great Basin Gold Announces Pricing of C$130 Million Equity Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 12, 2007) - Great Basin Gold Ltd. ("Great Basin Gold" or the "Company") (TSX:GBG)(AMEX:GBN)(JSE:GBGOLD) announces that it has priced an offering of 50,000,000 equity units at a price of C$2.60 per unit resulting in gross proceeds of C$130,000,000. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase a share of Great Basin at a price of C$3.50 until 24 months following closing. The Underwriters have an option, exercisable for a period of 30 days following the closing of this offering, to purchase an additional 7,500,000 units at the issue price, for additional gross proceeds of $19,500,000. A syndicate led by BMO Capital Markets and including Desjardins Securities Inc., Pacific International Securities Inc. and RBC Capital Markets acted as underwriters in connection with the offering.

The net proceeds from this offering will be used by the Company to pay the cash purchase price of Hecla Ventures, for exploration and development at the Hollister Property, and for working capital. The offering is expected to close April 19, 2007 and is subject to receipt of all final regulatory and stock exchange approvals.

A registration statement relating to the offer of the units has been filed with the U.S. Securities and Exchange Commission under the U.S.-Canada multi-jurisdictional disclosure system, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the issuance of a receipt for the final short form prospectus from all applicable Canadian securities regulators and in the United States prior the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or province in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or province. Copies of the final prospectus, when receipted, may be obtained from BMO Capital Markets at 1 First Canadian Place, 4th Floor, Toronto, ON M5X 1H3 and copies of the registration statement may be obtained from BMO Capital Markets at 3 Times Square, 27th Floor, New York, NY 10036.

Ferdi Dippenaar, President and CEO

Forward-Looking Statements or Information:

Statements or information in this news release announcing the proposed offering and the anticipated use of proceeds are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information under Canadian securities laws. Forward-looking statements or information are statements or information that are not historical facts and that are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements or information, including the need to negotiate an underwriting agreement with the managing underwriters and to satisfy the conditions set forth therein; the need to satisfy regulatory and legal requirements with respect to the proposed offering; risks related to the exploration and development of the Company's projects; market fluctuations in prices for securities of exploration stage companies; uncertainties about the availability of additional financing; uncertainties related to fluctuations in gold prices; the possibility that the Company may change its plans with respect to one or more properties; and other risks and uncertainties described in the Company's annual report on Form 40-F and Reports on Form 6-K and F10 filed with or furnished to the U.S. Securities and Exchange Commission. Although we believe the expectations reflected in our forward-looking statements or information are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. For further information about the Company see its public filings available for review and download at www.sec.gov and www.sedar.com.

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • Great Basin Gold Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll-Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.greatbasingold.com