Great Basin Gold Ltd. (GBG), a developer of gold and silver deposits, Monday reported a loss for the third quarter. Further, the company said that it is on the way to finalize a C$110 million bought deal convertible debenture offering for the funding of its Burnstone Project.
The Sandton, South Africa-based company reported a net loss for the third quarter of C$16 million of C$0.05 per share.
No revenues were recorded during the quarter as the company elected to retain the high-grade ore produced from its Hollister Project in Nevada, USA, in order to treat it at its Esmeralda Mill.
Corporate cash expenses for the quarter were C$9 million and pre-development expenses were C$9 million. Exploration expenses amounted to C$4 million for the third quarter.
Pre-development expenses on Hollister Project were C$8.4 million while pre-development expenses capitalized on Burnstone project were C$29 million.
The company also noted that it can currently process excess tonnage at Yukon-Nevada's Jerritt Canyon facility at a cost of US$88 per ton pursuant to an agreement with Yukon-Nevada Gold Corp.
Cash cost per gold equivalent or Au eqv ounce extracted, excluding milling costs, were CDN$379 per Au eqv ounce for the third quarter. A total of 18,232 tons of ore grading 0.99 Au eqv ounces per ton or 34.1 g/t, containing 18,026 Au eqv ounces was extracted during the quarter.
Further, the company said the project funding facility for its Burnstone Project was approaching finalization during the quarter, as the company saw an opportunity to substitute unsecured convertible debt with a competitive coupon through a bought deal of C$110 million. Great Basin Gold expects to use the net proceeds of the deal to repay the project funding drawn down to date.
Year-to-date, net loss narrowed to C$40 million from C$81 million in the same period last year. Gross revenue for the period rose to C$44 million from C$10 million a year ago. Earnings per share for the fiscal 2009 year-to-date period were $0.13.
GBG last traded on Friday at US$1.54 on the AMEX.
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