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
Oct. 4, 2012 /PRNewswire/ - Great Basin Gold Ltd. ("
Great Basin Gold"), (TSX: GBG; NYSE MKT: GBG; JSE: GBG)
announces that further to its news release of
September 20, 2012, the
$35 million debtor-in-possession loan from its current lenders
Lender DIP Loan") authorized by the Supreme Court of
British Columbia on
September 19, 2012 and reaffirmed on
September 27 with amendments, closed on
October 3, 2012. An initial utilisation of
US$14,235,000 under the Lender DIP Loan has now been advanced of which approximately
US$9,235,000 was used to pay down the emergency loan advanced by the lenders on
September 20 as an amendment of the existing 2010 Burnstone
$150 million secured credit facility ("the
2010 Burnstone Facility").
British Columbia appellate court has today denied an application made by an ad hoc committee of holders of the Great Basin Gold's convertible debentures ("
CD Committee") for leave to appeal the
September 27 decision of the
British Columbia Supreme Court. The CD Committee's main objection to the Lender DIP Loan is the granting by Great Basin Gold Inc. ("GBGI"), parent of the Great Basin Gold subsidiaries in
Nevada which own the Hollister and Esmeralda assets, of a guarantee (the "
Guarantee") of the obligations of the 2010 Burnstone Facility, which is a requirement under the Lender DIP Loan. The British Columbia Supreme Court rejected this objection, and the
British Columbia Court of Appeal today denied leave to appeal that decision. Yesterday, the CD Committee obtained from a
Nevada State court a 7 day temporary restraining order ("
TRO") restricting GBGI from entering into the Guarantee. The CD Committee is also seeking a receivership order against GBGI. GBGI will vigorously defend itself in the
In other developments, TSX has determined to delist the Common Shares, Debentures and Warrants (Symbols: GBG, GBG.DB and GBG.WT) (collectively, the "Securities") of the Company at the close of market on
October 25, 2012 for failure to meet the continued listing requirements of TSX. The Securities will remain suspended from trading.
Lou van VuurenCEO (interim)
Cautionary and Forward Looking Statement Information