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Yes,FIRST:http://www.greatbasingold.com/businessrescue/14032013/Southgold%20Progress%20Report%20-%2014%20March%202013.pdf
Second: 5 bidders or potential purchasers for Burnstone and more to come
Third: Gold is now trading at $1595
Fourth: Hunter Dickinson http://www.hdimining.com/s/Home.asp Ronald Thiessen and Robert Dickinson's reputations are on the line; really imagine them trying to get any form of financing if the bankers lose 99+ cents on every dollar invested in GBG.
Sadly, will the shareholders be properly compensated well if you purchased these shares at under 10 cents or have averaged down to that level...
Fifth: Hollister
Sixth: Tanzania, GBG manages a joint venture with African Barrick Gold Plc in the Geita Belt of the Lake Victoria Goldfields
Seventh: Mozambique Great Basin Gold holds an 80% interest in an unincorporated joint venture with G S Minase Refnaria Limitade (“GSR”) in Mozambique that one day will be established.
Eighth: www.youtube.com/watch?v=uEY4M6r2l5g
Both Hollister & Burnstone should be selling for at least $ 1 billion dollars each.
Great Basin Gold has not properly proven yet that there are incredible gold reserves in and around Hollister but it is quite common knowledge that with expansion drilling and testing of new targets on the property they will continue to be found.
I hope GBG and HDI do not give Hollister away and this may be the reason why they will need to hang on to it. Without the proven reserves the bids may not come near what Hollister is truly worth!
Fortunately, CIBC World Markets in consultation with Great Basin Gold has been in contact with potential purchasers of the Hollister Property and the varied assets. Remember every offer to purchase the Hollister property will be subject to Court approval in British Columbia, Canada.
CIBC WM Timetable
Feb. 15, 2013 receipt of binding bids including markups of Purchase Agreement and bid procedures;
No later than March 7, 2013 - court approval of "Stalking Horse" agreement and bid procedures;
No later than March 8, 2013 - launch broad remarketing;
No later than April 15, 2013 - receive final bids;
No later than April 16, 2013 - auction held; and
No later than April 18, 2013 - court approval of final offer and sale
Let's hope they sell Hollister and that GBG does not try to invest any profits from the sale of Burnstone back into Hollister and take it off the auction block! If this happens, this entire process will drag on for at least a year before enough gold is produced from Hollister for the shareholders to see a slight profit.
I want to see both mines selling for about a billion dollars this spring.
www.kpmg.com/Ca/en/services/Advisory/TransactionRestructuring/CreditorlinkSites/Great-Basin-Gold/Documents/GBG-Motion-Material-First-Affidavit-of-Peter-Gibson.pdf
Two huge gold mines, varied assets and a Price Per Share of .0105 cent(s) much of it owned by Hunter & Dickinson through a numbered company in the Cayman Islands and even better yet the brilliant Ron Thiessen is at the helm.
I am now an official realistic Great Basin Gold pumper!
Good news, it is not too late for another bid for either mine to arrive so...
Ron is known for doing amazing deals so...I am waiting!
Will the shareholders share in the profits? Qui sait? ¿QUIÉN SABE? Who knows? Well Ron has a good clue!
Ronald W. Thiessen & Robert Dickinson along with Great Basin Gold are featured in this article from 2009.
Ron and Bob are quite a team!
www.gold-speculator.com/people-interest/7642-robert-dickinson-ronald-w-thiessen.html
Visit if you want to put a smile on your face and read again the latest Southgold Progress Report:
www.greatbasingold.com/businessrescue/14032013/Southgold%20Progress%20Report%20-%2014%20March%202013.pdf
Let's Meet At The Bellagio In Vegas Only If The PPS Goes Well Over $1 +
There is heavy security and cameras everywhere so... Should be safe?
Hopefully, we will toast with green beer in the late spring!
I doubt this meeting will ever happen... However....
Stranger things have happened.
I concur!
I am thinking a GBG millionaire's party in Las Vegas, New York, Vancouver & Johanesburg in early June?
For those of us who bought a whack of shares at .01 !
Have You Hugged Your Golden~Polar~Bear Today?
Gold is trading at $1592. Not Bad!
When Will Commercial Mining Start At Hollister?
“It should add a healthy buffer to our treasury,” CEO Ferdi Dippenaar told Miningmx. "A doubling in size of the facility is possible."
"Great Basin is still simply trial mining at Hollister and needs to clear all the regulatory hurdles to start commercial mining.
Years ago , Great Basin threw open its doors to interested parties to join it in a search for gold on the Hollister property as well as possibly restarting the old Esmeralda mine where its mill is based."
Many years ago,Having completed a geological survey of Hollister and seeing a number of prospective targets, Great Basin realised it could not fully explore or exploit these by itself, said Dippenaar.
“We are currently focused on just five percent of the property and it’s pointless to sit on the rest of it forever and a day. We thought why not involve two or three interested parties for a joint venture or strategic interest partnership,” he said.
"Given the cash constraints within Great Basin and its focus on delivering the Burnstone project and getting Hollister and the Esmeralda mill firing on all cylinders, it makes sense for the company to bring in other companies." said Dippenaar...
If a joint venture was going to happen it would have happened years ago. I think and hope we are looking at an outright purchase of GBG! As a share~holder this is the only way I see us turning a quick profit from this monumental financial mess.
$75 million would only be a wee drop in the bucket!
24 million Au oz * $1585 oz =
$ 38 040 000 000.00 / 2 (expenses) = $ 19 020 000 000 billion!
OK, so I exagerated a little! I had to get the vultures attention.
Hey, it got your attention are you a...?
Now, I just need a large golden flask for my green beer!
Vultures Have arrived; We Are Back At A Penny!
We need more vultures; I want to see the share price rise.
Imagine all of our GBG shares are only worth about 5 million dollars. Great Basin Gold's assets could be worth $ 1 trillion dollars.
Really this incredibly low share price makes absolutely no sense!
As to the bidders that have not qualified yet remember that they must prove that they have the funds available to make the purchase at the end of March. This might take a few days or weeks when you are dealing with international bankers and certifying funds.
Hope it is Gonna Be Great!
If GBG does sell Burnstone at a slight profit my concern is that they will not distribute any of the profits to shareholders but instead pay off all of the creditors including GBG; pump the money back into Hollister and decide not to auction it off in mid April? If Hollister does not start pumping out gold...this year...
This would simply drag this process on for years. Would our shares bounce???
Hoping to see a few more last minute bidders drop into the race!
New Southgold Exploration Progress Report
March 14th, 2013
www.grtbasin.com/businessrescue/14032013/Southgold%20Progress%20Report%20-%2014%20March%202013.pdf
Thank you, Peter van den Steen for moving promptly on this!
Maybe Mexican billionaire Carlos Slim will make a bid for GBG?
Let's Hope Eike Batista Buys Great Basin Gold!
He loves gold, is a billionaire but he might be too tough of a negotiator?
Will Wits Gold put in a bid for Burnstone?
Why not?
A little sweet revenge for Philip Kotze, Chief Executive Officer of Wits Gold?
Do you remember the resignation of our brilliant independent director of Great Basin Gold Philip Kotze, effective on a September 6th many moons ago from Great Basin’s board, this arduous event is still stoking majour speculation that Witwatersrand Consolidated Gold Resources ( WITS GOLD ), of which Kotze is CEO, is seriously mulling a bid for BURNSTONE.
Great Basin Gold's monumental failure may have an extremely thin silver or gold lining for their pummelled shareholders?
Shorting Great Basin Gold The Penny Stock? For $$$
DATE SHORT VOLUME TOTAL VOLUME
March 13, 2013 1190088 2042575
March 12, 2013 575250 2135754
March 11, 2013 142380 2168909
March 8, 2013 18200 919492
March 7, 2013 844558 3483635
March 6, 2013 1477489 3345279
March 5, 2013 223197 2002798
Brilliant Work Ron Thiessen and the Hunter Dickinson Team!
Really, we would not want to see AngloGold, Goldfields, AngloAmerica, Newmont or Barrick pay over a nickle for our GBG shares or the liquidation of the two gold mines and the varied Great Basin Gold assets worth billions of dollars?
Do not worry about your GBGLF shares rising as long as there is this consistent downward pressure to keep them sub or at about a penny this month.
Market Value $4,757,314 a/o Mar 12, 2013
Great Basin Gold is a steal at this price!
Great Basin Gold Cannot Go Bankrupt!
If they do all of their South African mineral licences will revert back to the South African government and their South African holdings will be worth nothing! They must sell Burnstone or find a solid joint venture and pronto!
Hunter Dickinson and T. Barry Coughlan who is a Director of Great Basin Gold will do everything in their power not to allow this to happen. Barry is a gifted financial advisor!
http://finance.yahoo.com/news/mineral-mountain-appoints-t-barry-184845119.html
Remember GBG is the sole shareholder of N5C Inc. a Cayman Island registered company, which is in turn the sole shareholder of N6C Incorporated, also a Cayman Island registered private company to South Gold Exploration
February 2009:
Southgold Exploration (Pty) Ltd, a 100% subsidiary of Great Basin Gold? awarded right to mine for gold, silver and aggregate in the Burnstone mining area for period of 18 years from date of execution of mining right, as well as renewal rights.
May 2010:
Shaft bottom (1,601 ft/488 meters) reached, concluding sinking phase (phase one) of vertical shaft project.
August 2010:
Measured and Indicated resources increased by three percent to 12.1 million ounces.
All of GBGs assets should be easily selling for $1 billion US +++
Patrick R. Cooke as a Director of Great Basin Gold Limited, Chairman of the company's Audit Committee and a Chartered Accountant must be pleased to see the price of gold rising to around the $1595 level. There may be hope for Great Basin Gold yet!
He is responsible for listing two companies on the main board of the Johannesburg Stock Exchange and was the Financial Director of a third JSE listed company. His industry experience is wide, having been involved in mineral information technology, financial services and professional services companies. He was appointed a non-executive director of Sallies Limited in October 2009 and in February 2010, was appointed Financial Director and Chief Operating Officer.
An interesting side note, market circumstances in 2008 and 2009 led to both of Sallies operations being placed on care and maintenance, but a recovery in the fluorspar market justified the recommissioning of the Witkop plant in March 2011. The mine is now operating profitably but the Buffalo operation remains on care and maintenance.
http://www.sallies.co.za/
Let's all hope for a much more successful outcome for Burnstone and Hollister?
Ron Thiessen holds a BComm degree from the University of Saskatchewan and a Chartered Accountant designation. He is not willing to risk any further of his money or Hunter Dickinson's limited funds to prop Great Basin Gold up. Ron is being penny wise and extremely pound foolish. His Hunter Dickinson Team thought they could easily raise another half billion in 2012- 2013 to get this off the ground. The funds are drying up and they will probably sell all of the GBG assets this spring.
My concern is that they try to drag this over three years using every legal stalling maneuver in the American, African and Canadian law books.
I want GBG sold for a slight billion dollar profit this spring or a proper joint venture with an international company with deep pockets and powerful international clout like AngloAmerican. Ron knows the board of directors well so...
http://www.angloamerican.com/business/copper/pebble_partnership
Do not be surprised if AngloAmerican, Newmont or Barrick win the bid for Hollister Mine www.greatbasingold.com/nevada.cfm
Ron and his savy HDI Team will not give up GBG easily or without a legal fight!
GBG .01 Will BOUNCE & IS A STEAL!
Watch for a HUGE run this spring! Great Basin Gold at this level is a STEAL! When was the last time you saw, a Hunter Dickinson company with Ron Thiessen at the helm trading at .01 cent price per share with these varied reserves??? It is an absolute STEAL! I highly doubt it will liquidate in 2013?
www.youtube.com/watch?v=elN9iyllTew
Barrick, Gold Fields, AngloGold, Newmont and Harmony are all interested. There are only 6.4 million Au oz in reserves (proven and provable), and 12.6 million ounces Au as measured and indicated resources.
That represents between $5.4 billion (using P&P numbers), and $10.7 billion (using M&I numbers), once they get the cost of production down to about $800/oz."
www.youtube.com/watch?v=uEY4M6r2l5g
I wish the HDI Team would stop playing hard ball with the creditors and the GBGLF & GBS shareholders!
Remember to thank me in 2014 and beyond!
GBGLF = GBS Stock Berlin up 14.29% March 12 2013 Germany
www.macroaxis.com/invest/market/GBS.BE--GBS
Ronald Thiessen Will NOT Give GBG Away For Pennies Per Share!
If Ron does not want to lose his reputation as a successful Director and Chairman of GREAT BASIN GOLD??? President and CEO of Northern Dynasty Minerals Ltd. ( THE SOON TO BE HIGHLY PROFITABLE PEBBLE PROJECT ) and a Director of the Pebble Partnership? Fortunately, he leads Northern Dynasty's corporate development and financing activities and is CEO of Hunter Dickinson Inc.
Ron must be interested to learn or at least knows that on March 6, 2013, Vancouver, BC -- Curis Resources Ltd. (TSX: CUV) ("Curis" or the "Company") responds to a recent vote by the Florence Town Council authorizing the acquisition of private land owned by Curis through eminent domain for the purported purpose of a wastewater treatment facility. The Town's recent action has no legal effect on the ownership of the Company's land or near-term project development plans. ???
The law in Arizona and the United States places a high value on the right to own private property and heavily restricts government bodies from unwarranted takings of private property. The Fifth Amendment of the United States Constitution provides that "[n]o person shall be ... deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation." Hence, Curis has no doubt that the courts will not permit the Town to follow through with this Council authorization.
www.hdimining.com/s/Curis.asp
&
February 22, 2013, Vancouver, BC -- Quartz Mountain Resources Ltd. ("Quartz Mountain") (TSX-V: QZM; OTC: QZMRF) announces that Michael Lee has been appointed as Chief Financial Officer ("CFO") and Lena Brommeland as Executive Vice President of the Company, effectively immediately. Mr. Lee replaces Simon Beller who has resigned from his role with the Company.
www.quartzmountainresources.com/s/Corporate.asp
Can you really see Ron and his briliant HDI Team giving Great Basin Gold away for a song and a dance?
Ronald Thiessan Will NOT Give GBG Away For Pennies Per Share!
If Ron does not want to lose his reputation as a successful Director and Chairman of GREAT BASIN GOLD??? President and CEO of Northern Dynasty Minerals Ltd. ( THE SOON TO BE HIGHLY PROFITABLE PEBBLE PROJECT ) and a Director of the Pebble Partnership? Fortunately, he leads Northern Dynasty's corporate development and financing activities and is CEO of Hunter Dickinson Inc.
Ron must be interested to learn or at least knows that on March 6, 2013, Vancouver, BC -- Curis Resources Ltd. (TSX: CUV)[/b] ("Curis" or the "Company") responds to a recent vote by the Florence Town Council authorizing the acquisition of private land owned by Curis through eminent domain for the purported purpose of a wastewater treatment facility. The Town's recent action has no legal effect on the ownership of the Company's land or near-term project development plans. ???
The law in Arizona and the United States places a high value on the right to own private property and heavily restricts government bodies from unwarranted takings of private property. The Fifth Amendment of the United States Constitution provides that "[n]o person shall be ... deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation." Hence, Curis has no doubt that the courts will not permit the Town to follow through with this Council authorization.
www.hdimining.com/s/Curis.asp
&
February 22, 2013, Vancouver, BC -- Quartz Mountain Resources Ltd. ("Quartz Mountain") (TSX-V: QZM; OTC: QZMRF) announces that Michael Lee has been appointed as Chief Financial Officer ("CFO") and Lena Brommeland as Executive Vice President of the Company, effectively immediately. Mr. Lee replaces Simon Beller who has resigned from his role with the Company.
www.quartzmountainresources.com/s/Corporate.asp
Can you really see Ron and his briliant HDI Team giving Great Basin Gold away for a song and a dance?
Hoping for a dime per GBG share but our shares are now being watered down internationally? This is not good news!
I concur with your thoughts! I am hoping that Ronald Thiessen and his team do not simply find a way to easily liquidate all GBGLF shares this spring and dispose of the creditors in bankruptcy proceedings that will just drag on?
We can all make this process more transparent by simply digging and searching for pertinent financial information. Follow the money, key players and the shares internationally!
Ronald Thiessen our Director and a distinguished Director of Hunter Dickinson should take the time to inform the GBG shareholders at least via the Great Basin Gold website when shares will be traded on a completely different international stock exchanges?
Ronald is really playing hard ball with us so he must be feeling quite a financial squeeze at the moment?
In reality, all of the GBG assets should be selling this spring for between $5 & $10 billion dollars and the shareholders should be handsomely rewarded in a perfect world! ;~)
GBS Great Basin Gold Started Trading On Feb. 6,2013
Code number 885375
ISIN CA3901241057
Symbol GBS
Sector Mining
Country South Afrika
Home marketOTC-QB
Market segment Berlin Open Market
URL of company www.greathbasingold.com
B E K A N N T M A C H U N G
Wiederaufnahmen
In Übereinstimmung mit der Heimatbörse wird die Preisfeststellung der Aktien der
nachstehenden Gesellschaft mit sofortiger Wirkung wieder aufgenommen.
Name ISIN WKN Bemerkungen
Great Basin Gold Ltd. CA3901241057 885375
Markt : Freiverkehr bzw. Berlin Second Regulated Market - variabel
Skontroführer : 1172 mwb fairtrade Wertpapierhandelsbank AG
Berlin, den 8. März 2013 STARTED TRADING ON FEBRUARY 6TH, 2013
GESCHÄFTSFÜHRUNG DER BÖRSE BERLIN
For more information:
www.boerse-berlin.com/index.php/Shares?isin=CA3901241057
B E K A N N T M A C H U N G
Wiederaufnahmen
In Übereinstimmung mit der Heimatbörse wird die Preisfeststellung der Aktien der
nachstehenden Gesellschaft mit sofortiger Wirkung wieder aufgenommen.
Name ISIN WKN Bemerkungen
Great Basin Gold Ltd. CA3901241057 885375
Markt : Freiverkehr bzw. Berlin Second Regulated Market - variabel
Skontroführer : 1172 mwb fairtrade Wertpapierhandelsbank AG
Berlin, den 8. März 2013 STARTED TRADING ON MARCH 8TH, 2013
GESCHÄFTSFÜHRUNG DER BÖRSE BERLIN
For more information:
www.boerse-berlin.com/index.php/Shares?isin=CA3901241057
GREAT BASIN GOLD Shares(GBS.BE)-Berlin Are Now Trading!
0.0110 0.0010( -8.33% ) Mar 8, 10:22AM EST 2013
GBG:JNB & GBGLFN:MEX interesting?
A $6 million dollar question? Yet another GBG loss!
Were the 12 million Shanta shares and warrants, the varied Tanzanian assets only worth $ 6 or 8 million dollars? Hardly!
What will the shares and assets be worth to Red Kite in five years time? What would a proper JV with Shanta and "BEAL" have been worth to Great Basin Gold in the near future?
Is Great Basin Gold with guidance from HDI http://www.hdimining.com/s/Home.asp going to sell off many of their extremely valuable assets piecemeal over the next several months until nothing is left for the GBG shareholders?
Will CIBC World Markets auction Hollister on April 16th? What might it fetch?
For futher information visit:
http://www.kpmg.com/Ca/en/services/Advisory/TransactionRestructuring/CreditorlinkSites/Great-Basin-Gold/Documents/GBG-Motion-Material-First-Affidavit-of-Peter-Gibson.pdf
GBG's 23.4M Au oz and 7.3M Au oz reserves
GBG's 23.4M Au oz and 7.3M Au oz reserves * a very conservative $350.00 per Au oz = $ 10.74500 billion U.S. dollars
Great Basin Gold is focused on its two emerging flagship mines in the world’s richest gold-producing regions, the Hollister gold mine located on the Carlin Trend in Nevada, USA and the Burnstone gold mine located in the Witwatersrand Basin goldfield of South Africa. Together, these operations comprise a total resource base of 23.4M Au oz and 7.3M Au oz reserves.
Properties
Tanzania
In Tanzania, exploration programs are being conducted in two separate geological terrains, namely the Archean (2.7-3.3 billion year old “Ga”), greenstone-hosted, Lake Victoria Goldfields (north-west) and the Proterozoic (2.2-1.6 Ga) Lupa Goldfields (south-west). Great Basin Gold also manages an 80% earn-in joint venture with African Barrick on 42 prospecting licences in the Geita Belt of the Lake Victoria Goldfields.
Mozambique
Great Basin Gold holds an 80% interest in an unincorporated joint venture with G S Minase Refnaria Limitade (“GSR”) in Mozambique. The purpose of the joint venture is to establish a gold exploration and mining business in Mozambique, whereby the Company will have the exclusive right to explore all GSR’s properties. Great Basin Gold manages the JV and is responsible for the day to day management of the exploration and other activities to be conducted.
New Major Shareholder For Shanta IS GBG's LOSS!
05 February 2013
Shanta Gold, the East African focused gold mining company, is pleased to announce that it was notified on 4 February 2013 that RK Mine Finance Trust I, part of the Red Kite group of funds ("Red Kite"), has acquired 12,368,584 ordinary shares in Shanta Gold and share purchase warrants to acquire the equivalent number of ordinary shares in Shanta Gold (subject to an anti-dilution clause) at a strike price of 35p. Red Kite acquired the shares and warrants from Great Basin Gold Limited. The shares and warrants give Red Kite an interest in the Company of 5.2% (assuming exercise of warrants). Shanta Gold welcomes Red Kite as a shareholder of the Company.
Enquiries:
Shanta Gold Limted
Mike Housten, CEO
Edward Johnstone, FD
Tel: +225 (0) 22 2601 829
35 pence equals about 50 cents
12,368,584 * .5 = $ 6,184,292.00
Ronald Thiessen is the Chairman & Director of Great Basin Gold and is presently the Director, Chief Executive Officer of Hunter Dickinson
www.hdimining.com/s/Directors.asp
SouthGold Exploration Report HIGHLIGHTS for GBG Shareholders!
3. LITIGATION
3.1 The application to the High Court far a declaratory order to the effect that the rescue proceedings was properly instituted and are valid, was launched on 31 January
2013, with a hearing date scheduled far 19 February 2013. Notice of the availability of the applicatian papers will be sent out shortly to all affected persons.
3.2 The arbitration referred to in my last report is set down far hearing on 15 Aprii 2013.
There are, however, currently settlement negotiations underway.
4. THE RESCUE OF THE COMPANY
4.1 l remain of the view that there is a reasonable prospect that the company will be rescued through proceeds generated by either the sale of the shares or the sale of the Burnstone mine. As you are aware, JP Morgan was appointed as the transactional adviser. JP Morgan and J have now:
4.1 1 Finalised and distributed the process letter which contains the following timetable and sale guidelines;
1627973_1.DOCX 2
05/0212013
4.1.2 Before potential bidders will be permitted access to Southgold Management or the Burnstone site a pre-bid letter containing the following information is required:
4.1.2.1 Bidder information;
4.1.2.2 Technical expertise;
4.1.2.3 Financial capacity;
4.1.2.4 Approvai process; and
4.1.2.5 Black Economic Empowerment (''BEE") plan.
4.2 lf selected as a potential bidder, that company will be notified and invited to submit a detailed binding offer to J.P. Morgan by Spm South Africa time an Friday, 29 March, 2013.
4.3 Prior to submitting the offer, the potential bidder will be given an opportunity (at the discretion of the Company) to engage with me, the Company's legai counsel and other Company representatives in order to clarify key legal issues and to discuss the potential bidder's proposed offer structure in detail.
4.4 Any offer should contain at least the following terms and information:
4.4.1 the cash consideration offered for 100% of the shares in and any shareholder loans or other claims against the Company, expressed in US$ ("the Consideration");
4.4.2 detail and evidence of the bidder's ability to pay the Consideration in full and in cash upon completion of the transaction;
4.4.3 Propositions regarding whether Southgold assumes any of the debt currently owed by GBG as well as a financial forecast for a period of at least five years;
4.4.4 a preliminary outline of the bidder's proposed post-transaction development plans far the Company;
4.4.5 a description of the bidder's proposed plans regarding the Company's existing management and contract employees and their role and participation in the business following the transaction;
1527973_1.DOCX 3
CS/02/2013
4.4.6 confirmation that the Offer is made as a principal for the bidder's own account;
and
4.4.7 any other conditions to the Offer.
4.5 JP Morgan continues to investigate and vet its network of potential bidders. The data room has been opened and access given to potential bidders.
4.6 A number of site visits have been held and l am in the process of arranging a series of meetings to explain the business rescue framework.
4.7 At present, there are at least six serious and potentially suitable bidders.
4.8 As you are aware, l was not in a position to publish a business rescue pian by 15 January 2013 and sought an extension of the publication date from the holders of a majority of the creditors' voting interests, as contemplated by s 150(5) of the Act. l obtained the requisite consent and the date for the publication of the Business Rescue Plan has been extended to 31 May 2013.
5. PROOF OF CLAIMS
5.1 A deadline of 15 February 2013 is hereby set for the submission of claims by all creditors.
SIGNED AT CAPE TOWN THIS 5TH DAY OF FEBRUARY 2013
Peter Van den Steen
Business Rescue Practitioner for Southgold Exploration (Pty) Ltd
"At least six "serious and potentially suitable" parties are lining up to buy the Burnstone mine near Balfour from Great Basin Gold, according to the group's administrators. JPMorgan is handling the bidding process; the deadline for offers is end-March.
Ferdi Dippenaar, CE of JSE- and Toronto-listed Great Basin, left the group in August, after a series of delays and cost overruns on both the company's projects, Burnstone in South Africa and Hollister in the US.
In September Southgold Exploration, which owns Burnstone, filed for business rescue proceedings in SA, triggering a filing under Canada's Companies Creditors Arrangement Act. Last week the group's US operations filed for chapter 11 bankruptcy protection.
In South Africa, business rescue proceedings can be instituted by a company's directors or creditors if they believe there is a chance it can be rehabilitated. But this process wasn't followed in the case of Pamodzi Gold, whose creditors filed for provisional liquidation of various assets in 2009.
Peter van den Steen of V-Squared Business Rescue Services,who is managing the process for Great Basin, says the law permitting business rescue came into effect in May 2011.
Burnstone has substantial gold reserves, about 6,4moz, and construction of the mine is close to completion. Estimates in 2006 suggested it would cost R1bn to start a mine in 2009 producing about 200000oz of gold a year for 14 years. Management decided to use a mechanised mining method called long-hole stoping, a bold step as attempts at full mechanisation have often failed in SA underground mining because of the narrow, uneven ore bodies. It presented major difficulties for Burnstone.
Since 2009, Great Basin has raised about R3,5bn in equity and debt to fund development of both Burnstone and Hollister. Hollister was projected to produce 80000oz-100000oz of gold equivalent (it mines both gold and silver) a year for eight years.
But production at both mines fell well behind forecast. In the nine months to September Great Basin's gold production from its two operations fell to 65610oz from 93775oz a year before. Burnstone has been on care and maintenance since September. Though Hollister continued to produce gold, in the past two months output has been declining because of unseasonal weather and the lack of a mine plan. As a result, various creditors took action, including investment company Franco-Nevada Corp for royalty payments, and the state of Nevada for back taxes.
Hollister is also up for sale, with three interested bidders.
Great Basin's creditors extended an initial US$35m loan to help with its current costs under administration and last week increased this by $16m.
Once bids for Burnstone are received, a business rescue plan can be put together.
Peter Van den Steen cannot divulge the names of Burnstone's bidders but says there are bidders from across the world, and some local entities.
Speculation is rife that foreign bidders could include Chinese, Koreans and Eastern Europeans. Chinese companies have already started to buy up SA mining assets: Chinese state-owned investment group Citic has bought into Gold One International, a group of Chinese investors called Wing Hing International bought Taung Gold, while Jinchuan has bought stakes in Wesizwe Platinum and Metorex. China Africa Precious Metals bought the Orkney mine from Pamodzi Gold's liquidators after Aurora Empowerment Systems could not raise the funds.
Among local companies, several showed interest in the Pamodzi Gold assets and might still have an appetite for acquisitions, such as Goliath Gold, Virgile Mining, and even industrial group Sekunjalo, which had Malaysian partners.
Possible Eastern European bidders might include Renova of Russia, which already has an investment in manganese in the Northern Cape.
According to an investment banker who asked not to be named, "There is definitely an ore body there and somebody will make money from it. The risk lies in valuing it. At least another $100m needs to be spent on it."
Van den Steen is confident that "the transaction process that we have designed together with our advisers will maximise the outcome for the stakeholders in Southgold." wrote Charlotte Mathews on March 7th, 2013.
You, Barry Coughlan and Patrick R. Cooke who just happen to be two Directors of Great Basin Gold will probably find this article by Charlotte Mathews most informative?
http://www.fm.co.za/business/money/2013/03/07/salvaging-some-value
Do not sell your 2000 GBG shares this month.
Your shares are now 2000 GBGLF penny shares. They are almost worthless.
Great Basin Gold has 7 bids to purchase most if not all of their assets. These bids will be revealed at the end of March.
If the bids are all too low your shares will be worth nothing. If one or several bids are high; all debts must be paid and any profits will be distributed to the share holders.
There is an extremely slim chance part of this company will survive?
"Peter van Den Steen gave comprehensive feedback regarding all the steps that need to be taken towards getting a proper bid for the asset or the company ( Great Basin Gold ). The target date for binding offers is end of March 2013.
2.4. Peter was very confident that a proper bid will be received, especially as the potential bidders are reputable mining companies that will meet the required criteria to purchase the mine or the company." These quotes are from minutes of a meeting on Wed. 30th Jan. 2013 for Great Basin Gold and the SouthGold Creditors.
Fortunately, for all GBG shareholders seven + bids will be opened at the end of March.
6,4 million moz * US$340/oz = $ 2 176 000 000
16 million inferred oz * US$35/oz = $ 560 000 000
Conservative very rough figures ~ Total = $ 2 736 000 000 +++
+ Hollister in Nevada and construction of the mines are near completion!
I am hoping the GBG shareholders will see a dime+ per share???
6,4 million moz * US$340/oz = $ 2 176 000 000
16 million inferred oz * US$35/oz = $ 560 000 000
Some conservative very rough figures ~ Total = $ 2 736 000 000 +++
+ Hollister in Nevada and construction of the mines are near completion!
"Updated measured, indicated and inferred valuations
We have re-run our analysis to determine differentiated values for ‘measured’,‘indicated’ and ‘inferred’ resource ounces to include the Canadian, Australian and South African markets as well as the London one. In doing so, we have been able
to determine that the average value of a ‘measured’ resource ounce globally is US$340/oz, while that of an ‘indicated’ ounce is US$159/oz and that of an ‘inferred’ ounce is US$34/oz (excluding Witwatersrand ounces). An average ounce is worth US$158.56/oz, which contrasts sharply with both its cost of discovery (US$8.81/oz, as determined by leading international accountancy firm BDO – see inside) and an historic benchmark valuation of US$35/oz."
Will the shareholders see a dime per share???
The seven solid bids are sealed until the end of the month!
Will the shareholders be rewarded? Well the more public knowledge this all becomes the better for all GBG shareholders!
Let's hope the price of gold continues to rise prior to the end of March!