This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Great Basin Gold Subsidiary Seeks Creditor Protection Pending Loan Negotiations

JOHANNESBURG, SA, Sept. 18, 2012 /PRNewswire/ - Great Basin Gold Ltd. ("Great Basin Gold"), (TSX: GBG; NYSE MKT: GBG; JSE: GBG) announces that its principal South African subsidiary, Southgold Exploration (Pty) Ltd. ("Southgold") owner of the Burnstone mine, has filed for protection under the South African business rescue ("BR") procedures. Great Basin Gold itself expects to seek creditor protection this week. The insolvency filings are intended to allow Southgold and the Company a period of time to seek buyers and partners for Great Basin Gold's two gold mining projects and/or corporate level financiers in an effort to return to solvency. The BR proceeding constitutes a default under the Company's unsecured convertible debentures (TSX:GBG.DB) which have a principal amount of $126 million. Trading in Great Basin Gold's shares and debentures will remain suspended and the NYSE MKT, TSX and JSE are expected to initiate delisting procedures for these securities.

Great Basin Gold is currently endeavoring to negotiate a debtor-in-possession working capital loan with certain lenders which if successfully concluded and if approved by any necessary Court approvals, would provide Great Basin Gold with liquidity to pursue an orderly shutdown of Burnstone while it seeks a restructuring and/or sale of its assets. As of the time of this news release there can be no certainty the negotiations will succeed.

Lou van Vuuren, interim CEO, commented, " The BR creditor protection filing was necessary to provide the Company with some additional time to see results from its strategic restructuring process. Assuming our DIP loan negotiations are successful, those funds will be used firstly to ensure the orderly suspension of operations at Burnstone and to provide some additional funds for Hollister."

Lou van Vuuren CEO (interim)

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs