Great Basin Gold Ltd. (fka GBGLF)

[amarksp]

Refer to my April 23rd comments item #3, link here:
http://www.bearforum.com/cgi-bin/bbs49.pl?read=286675

Until the Voting Trust Agreement becomes a public document, if ever, we can only speculate on the terms and conditions of ownership transfer from SouthGold... Read the link above, my sense is that SouthGold shareholders are more long term oriented and will sell little or none of their initial shares on Aug 31st, the date first allowed. The initial 5 Million US$.75 warrants are another matter, these must be exercised within one year, i.e. May 1, 2004. I would think HD will find institutions to buy these warrant shares from SouthGold shareholders as necessary.

My opinion is SouthGold shareholders are very confident in the economics of their own Burnstone mine as well as with the Ivanhoe mine. If they were interested in the quick buck, they would have taken the presumed Placer Dome all cash offer as mentioned in above link. In the GBG deal, they got $3.25M cash so that should meet their immediate cash needs. Accordingly, my view is SouthGold will not be selling many shares onto the open market except for the US$.75 warrants they must exercise within one year. Would not be surprised to see Southgold exercise these warrants and retain some of them, rather than sell all of them, unless the GBG share price is substantially higer.

With GBG currently trading at $4 per ounce of measured plus indicated reserves, and with SouthGold likely confident on the probability of converting the indicated to measured reserves, would not be surprised if SouthGold largely retains its ownership stake in GBG, at least until GBG is valued more in line with its peers...