Mining Industry News: Great Basin Gold Closes $47 Million Facility

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May 24, 2010 (FinancialWire) — Great Basin Gold Ltd  (TSX: GBG) (AMEX: GBG) that it had executed all formal documents for a US$47 million export finance facility, with Credit Suisse AG (NYSE: CS) as the primary lender.

Following the fulfillment of customary conditions precedent, the funds are available and can be drawn upon as required, according to Grat Basin.

The facility has a maximum term of four years from date of draw down, with interest and capital repayment commencing 12 months after draw down. The facility bears interest at a margin of 4% over the USD LIBOR rate.

Great Basin said it will have the option to retire the loan 12 months after draw down at no additional cost. The Burnstone project is the primary security for the facility.

A deferred hedging program typical for these facilities will be finalized and implemented in the following weeks. Great Basin said it anticipates that a zero-cost-collar structure for up to 25% of the first 24 months of gold production will form the basis for the program with certain agreed metal prices and production costs being the triggering events to activate the deferred program.

Canada-based Great Basin Gold is a mining company engaged in the development and exploration of Gold properties. The company is currently in late stage development at two projects in Nevada, USA and in South Africa.

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