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Wednesday, September 19, 2012

Great Basin Gold's S African unit files for creditor protection

Per www.globalinsolvency.com:


Sept 18 | Tue Sep 18, 2012 6:40pm EDT
(Reuters) - Great Basin Gold Ltd said its South African unit Southgold Exploration filed for creditor protection a week after it suspended operations at its Burnstone mine.
Great Basin suspended production at the mine in the Witwatersrand Goldfields last week due to its inability to continue funding operations at the mine.
The mine, which started production in February last year, was producing about 5,000-6,000 tons of ore per day.
The company is trying to negotiate a debtor-in-possession working capital loan with certain lenders to pursue an orderly shutdown of the mine.
During the process of negotiation for financing, Great Basin plans to restructure or sell Southgold's assets.
South African miners have been grappling with union militancy, demand for higher wages and proposed higher mining taxes.

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