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)
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