Wednesday, 23 June

Golden Star announces amendment of deal for sale of Bogoso-Prestea mine

Business
Mining truck

Golden Star Resources Limited has announced that on May 31, 2021, the company and its wholly-owned subsidiary, Caystar Holdings, entered into an agreement with Future Global Resources Limited and its major shareholder, Blue International Holdings Limited, to further amend the share purchase agreement dated July 26, 2020, relating to the sale of Golden Star's 90% interest in the Bogoso-Prestea Gold Mine in Ghana to FGR, as supplemented by a letter agreement dated September 30, 2020, and amended by a first amending agreement dated March 28, 2021.

The staged payments that form the deferred consideration, as outlined in the Share Purchase Agreement, have been reprofiled to allow time for FGR to complete ongoing financing transactions and the environmental bonding process for Bogoso-Prestea.

The deferred consideration payments will now fall due as follows:

$15 million payment that was due on May 31, 2021 will now be payable by no later than July 16, 2021;

Should FGR complete a financing transaction prior to July 16, 2021, $5 million will be immediately payable to Golden Star with the remaining $10 million continuing to fall due on July 16, 2021;

and An amount of approximately $4.6m (comprised of the working capital balancing payment of approximately $4.3 million and fees of approximately $0.3 million for services provided by Caystar to FGR pursuant to a transition agreement dated September 30, 2020) will continue to fall due by no later than July 31, 2021.

Company Profile:

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana, West Africa. 

Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from the Wassa mine. 

As the winner of the Prospectors & Developers Association of Canada 2018 Environmental and Social Responsibility Award, Golden Star remains committed to leaving a positive and sustainable legacy in its areas of operation.

 

 

Source: classfmonline.com