Great Basin Gold’s subsidiary Rodeo Creek Gold, and certain of its affiliates, filed for Chapter 11 restructuring under the U.S. Bankruptcy Code. The companies expect no interruptions in day-to-day business and remain focused on continuing their trial mining operations at the Hollister gold mine and related ore milling at Esmeralda. Through this legal process, Rodeo Creek and its affiliates will seek to auction their assets and operations including the Hollister mine and the Esmeralda mill as a going concern, while stabilizing the operations and maintaining employment and current benefits programs.
To ensure continued access to funds sufficient to maintain operations and pay vendors, the company is seeking court approval for a $9 million Debtor-in-Possession facility. The companies believe this facility will allow for operation to continue during the Chapter 11 proceeding, and include funds sufficient to pay vendors and employees in the ordinary course of business.