Great Basin Gold Ltd. (fka GBGLF)

[amarksp]

Great Basin

Posted: Sun, 21 May 2006
[miningmx.com] -- GREAT Basin Gold, which owns the Burnstone gold mining prospect in South Africa, said it had raised gross proceeds of C$25m and expected to raise C$10m more.

Great Basin Gold issued 11.2 million shares at C$2.25/share on a 'bought deal basis'. A programme to place shares at the same price to raise C$10m would be announced this week, it said.

Ferdi Dippenaar, president and CEO of Great Basin Gold, told Miningmx recently the company wants to add up to two million more ounces at its Burnstone project in South Africa. This would increase gold output and extend the life of the operation beyond the planned 14 years, Dippenaar said.

Some of the cash raised from the placement and share issue would be used for Burnstone. Dippenaar told Miningmx that it will use cash flow from its Hollister Block at its Ivanhoe property in Nevada once the mine is in full production in 2009 to further fund Burnstone.