[miningmx.com] — GREAT Basin Gold (GBG), the international mining company developing a gold mine on the Witwatersrand, on Tuesday said it had bought all the minority preferred shares in its Rusaf Gold subsidiary.
The company said it issued 7.5 million shares with an agreed value of $2 each to
acquire the shares.
Great Basin said the acquisition of all the minority preferred shares eliminated any
further discovery-contingent common share issuance requirements as well as the
mandatory exploration expenditure timetable.
It also means that Great Basin now owns all the Tanzanian and other Rusaf prospects outright without further obligations.
As part of the same announcement, the company advised that it had disposed of its
shareholding in Kryso Resources plc for a total consideration of $3.4m.
“The restructuring of its Rusaf holdings and the sale of Kryso shares are part of the
company’s efforts to clean up its balance sheet,” Great Basin said.
At the same time, the company announced additional positive exploration results
from its Hollister property in Nevada.
It said significant progress had been made in 2010 with the geological and
structural modeling of the Hollister epithermal vein systems.
“The added experience and close coordination of the geology and mining team is
leading to marked refinements in modeling and evaluation of the deposit, resulting in
improved trial mining efficiencies,” it said.
The revised vein modeling is expected to positively impact on the integrity of the
resource estimation. An updated mineral resource estimate is scheduled for the third quarter.
“The improvement in understanding of the geology of the Hollister orebody and the
larger claim area is starting to bear fruit,” said Great Basin president and CEO Ferdi
Dippenaar.
He said the new veins, vein extensions and ounces are being added to the mine
plans and will be apparent when the updated resource statement.
“The prospective nature of this remarkable deposit continues to be underpinned by
results achieved from the exploration and trial mining programs,” Dippenaar said.
