Great Basin Gold (GBG-V) has arranged a $5-million financing with First Marathon Securities and Nesbitt Burns.
The money will be raised through the sale of 2.5 million special warrants priced at $2 per warrant. Each special warrant will convert to one share plus one share purchase warrant exercisable at $2 over a 12-month period.
If the weighted average closing price of Great Basin’s shares on the Vancouver Stock Exchange is greater than $4 for a period of 10 consecutive days, the purchase warrants will expire 30 days after the purchasers receive notice from Great Basin.
The special warrants will be privately placed with investors in Canada and the United States. The net proceeds of the offering will be used to finance exploration on the company’s Ivanhoe and Wilson-Independence properties in Nevada and to provide working capital.
The company has a 75% interest in the 14.7-sq.-mile Ivanhoe property in the Carlin trend, with Cornucopia Resources (CNP-T) holding the remaining interest. On the Battle Mountain trend, Great Basin can acquire a 100% interest in the Wilson Independence gold-silver property.
Great Basin has about 16.1 million shares fully diluted.
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