The Company’s Board of Directors has recently initiated a review process to consider a range of strategic alternatives with a view to preserving and enhancing shareholder value in light of continued financial challenges from the operational difficulties experienced, particularly with the production ramp up at the Burnstone mine. Strategic alternatives are likely to include, but are not limited to, the sale of all or a portion of the Company’s assets, a merger or other business combination transaction involving a third party acquiring all of the Company, a capital raising, sale of royalties or metal streams, recapitalization, reorganization, or restructuring of the Company, as well as continued execution of the Company’s existing business plan, or some combination of these alternatives.
As part of this strategic review process the Company’s President, Chief Executive Officer (“CEO”) and director, Mr Ferdi Dippenaar has resigned and Mr Lou Van Vuuren, the Company’s Chief Financial Officer (“CFO”) has been appointed as Interim CEO and director, both with immediate effect. In addition, Patrick Cooke, a director of the Company and the audit committee chair, will temporarily serve as unremunerated Interim CFO.
Great Basin Gold has also implemented an aggressive cost reduction program and is also working with its lenders to potentially restructure the current term loan facilities to improve the Company’s cash flow in the short to medium term. The Special Committee currently intends to seek to raise, through a combination of asset sales or new equity, a minimum amount of $60 million to relieve the near and intermediate liquidity concerns.