Great Basin Gold Ltd. (TSX: T.GBG, Stock Forum) (NYSE: GBG, Stock Forum), has struck a deal with an underwriting syndicate to raise $50 million from the sale of 61 million shares at 82 cents each on a bought deal basis.
Net proceeds from the offering are earmarked for working capital and the development and ramp up of the Burnstone mine in South Africa’s Witwatersrand Basin, about 80 kilometres southeast of Johannesburg. The company is hoping to increase the production rate to 254,000 ounces annually at a cash cost of US$579 per ounce.
Great Basin traded Thursday at 90 cents, giving the company a market cap of $428 million, based on 475.7 million shares outstanding. The 52-week range is $2.72 and 78 cents.