UPDATE 1-Great Basin Gold to sell ore to Newmont

* Expects 28,000 gold equivalent ounces at $26.3 mln

* To sell 35,000 ore tons to 50,000 ore tons

* Says to immediately send 40,000 ore tons

* To get 75 pct of value in five days of delivery

April 21 (Reuters) - Canada's Great Basin Gold Ltd GBG.TO said it agreed to sell up to 50,000 ore tons to Colarado-based Newmont Mining Ltd (NEM.N).

The company said it plans to immediately dispatch 40,000 tons, currently stockpiled at its Hollister property.

Great Basin said the agreement is for a minimum of 35,000 ore tons and it expects to recover about 28,000 gold equivalent ounces worth about $26.3 million.

Newmont will settle 75 percent of the estimated value of the ore within five days after delivery, at $1,000 per ounce for gold and $17 dollars per ounce for silver, Great Basin said in a statement.

Vancouver, British Columbia-based Great Basin's shares were up less than a percent at C$1.78 in afternoon trade Wednesday on the Toronto Stock Exchange, while those of Newmont were up over a percent at $52.07 on the New York Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Don Sebastian)