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Great Basin in Gold Fields royalty deal Posted: Wed, 21 Feb 2007 [miningmx.com] -- GREAT Basin Gold (GBG) has sold a 26% stake in its South African projects, which includes the R1bn Burnstone prospect, for R260m to Tranter Gold, an empowerment company. GBG will issue about 20 million news shares, equal to some 14% of its issued share capital, at an average price of R13.04/share, a 7% discount to GBG’s current price of R14.10/share. The most prominent figure in Tranter Gold is Sipho Nkosi, CEO-in-waiting of Johannesburg listed mining group, Exxaro Resources. Nkosi was also the founder of Eyesizwe Coal. He is joined in Tranter Gold by womens’ groupings including Malibongwe and Sidima, as well as other black businessman such as Humphrey Mathe who serves on the board of another JSE listed gold junior, Wits Gold. The aim is for Tranter Gold to be joined by an unnamed ‘strategic partner’ which will own 49% of a Newco. The Newco can flip up its asset level shares in GBG into the Canadian firm’s equity, a development that will help catapult Tranter Gold into a fully-fledged, empowered operating gold company. The purchase of the 26% stake in Burnstone also includes various prospecting rights in South Africa. Interestingly, part of the deal involves the sale of a royalty that GBG currently pays to Gold Fields. This is in recognition of a smelter agreement with Gold Fields which first owned the Burnstone prospect. Click Here to subscribe to our daily newsletter
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