SPY334.57+0.24 0.07%
DIA274.62+0.72 0.26%
IXIC11,010.98-97.09 -0.87%

Golden Star Resources to Sell its 90% Stake in a Ghana Gold Project to Future Global Resources for $55M Upfront and Up to $40M in Additional Payments

Golden Star has signed a binding agreement for the sale of Bogoso-Prestea to FGR Purchase price of $55 million with a further contingent component of up to $40 million Staged payments to ensure

Benzinga · -
  • Golden Star has signed a binding agreement for the sale of Bogoso-Prestea to FGR
  • Purchase price of $55 million with a further contingent component of up to $40 million
  • Staged payments to ensure FGR focuses investment capacity on the asset itself while providing Golden Star with exposure to its long-term growth potential
  • Operations are planned to continue at the Prestea underground operation, which includes the use of alimak mining on 24 Level and long hole open stoping mining activities on the newly developed 17 Level
  • Following the acquisition, FGR intends to review the entire Bogoso-Prestea project portfolio, which includes the significant refractory sulfide resource, and an extensive tenement package with exploration potential
  • The sale strengthens Golden Star's balance sheet and allows the Company to accelerate the growth and development of the large resource base at the Wassa mine, and increase exploration activities in the wider Wassa-HBB project area
  • Following the satisfaction of the closing conditions in the Agreement, including obtaining the required government approvals, the Transaction is expected to complete by no later than September 30, 2020 ("Closing")