Great Basin Gold Ltd.

Great Basin Gold Ltd.

March 22, 2007 19:13 ET

Great Basin Gold Ltd. Announces Public Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2007) - Great Basin Gold Ltd. (the "Company") (TSX:GBG)(AMEX:GBN)(JSE:GBGOLD) announced today that it has filed a preliminary short form prospectus with Canadian securities regulators and a related registration statement with the U.S. Securities and Exchange Commission under the U.S.-Canada multi-jurisdictional disclosure system, relating to a proposed public offering of units. Each unit will be comprised of one common share and one-half of one common share purchase warrant. The number of units to be distributed and the price of each unit will be determined in the context of the market with final terms to be determined at the time of pricing. A syndicate led by BMO Capital Markets and including Desjardins Securities Inc., Pacific International Securities Inc. and RBC Capital Markets act 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, as well as for working capital. The offering is expected to close mid-April 2007 and is subject to receipt of all necessary regulatory and stock exchange approvals.

A preliminary short form prospectus relating to the units has been filed in all Provinces and Territories of Canada, and a registration statement under the U.S.-Canada multi-jurisdictional disclosure system has been filed with the U.S. Securities and Exchange Commission, 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 short form prospectus and 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. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date.

Copies of the preliminary prospectus may be obtained from BMO Nesbitt Burns at 1 First Canadian Place, 4th Floor, Toronto, ON M5X 1H3 and copies of the registration statement may be obtained from BMO Nesbitt Burns at 3 Times Square, 27th Floor, New York, NY 10036.

For additional details, please visit the Company's website at or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.

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 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 and

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 N.A. Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)