[miningmx.com] — GREAT Basin Gold announced on Wednesday it has repaid its 2008 senior secured notes with the proceeds of the previously announced term loan facility from Credit Suisse.
The facility was increased from $60m to $70m to maximize leverage from its low costs.
The facility has been fully drawn down and has a term of four years, is repayable in quarterly installments commencing September 2011, and bears interest at a premium of 3.75% over the 3 month US LIBOR rate.
As part of the facility, the company executed a zero-cost-collar hedging program, consisting of a total of 117,500 ounces of gold spread over a four year term commencing in January 2012.
The call option price was fixed at $1,930 per ounce with the put option at $1,050 per ounce and as long as gold trades within these prices there is no cash cost to the hedge.
Great Basin Gold also announced that Walter Segsworth has resigned as a director. The board is in the process of nominating additional directors for the June 2011 shareholders meeting which will include two women candidates with solid financial and mining backgrounds.
