Golden Star Amends Bogoso-Prestea Sale Agreement
Golden Star Resources Ltd. has made changes to the sale of its Prestea and Bogoso mines which would alter the initial payment plans.
The firm and its wholly-owned subsidiary, Caystar Holdings, agreed with Future Global Resources Limited (FGR) and its
major shareholder, Blue International Holdings Limited, to amend a 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/
However, the firm announced on March 28 that the staged payments that form the deferred consideration, as outlined in the Share Purchase Agreement, have now been reprofiled to allow time for FGR to complete the environmental
bonding process for Bogoso-Prestea.
Additionally, the second deferred payment due in 2021 will be made together on 31 May 2021, some two months earlier than previously anticipated.
The deferred consideration payments will now fall due as follows:
-The $5 million payment that was due on March 30, 2021, will now be payable by no later than May 31, 2021;
-The $10 million payment that was due to be paid on July 31, 2021, will be brought forward for payment by no later than May 31, 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.
Pursuant to the terms of the Amendment Agreement, FGR will put in place a reclamation bond in respect of its environmental rehabilitation obligations for Bogoso-Prestea, and pay to the Environmental Protection Agency of Ghana the amount agreed with the EPA by no later than March 30, 2021, or such later date (or dates, as applicable) as may be agreed between
the EPA and FGR.
The Bogoso-Prestea operations are located in south-western Ghana, approximately 40km from the Wassa gold mine.
Recently, production was delivered from the Bogoso-Prestea open pits and the Prestea underground gold mine. In the second half of 2018, Prestea became an underground-focused operation, and the open pit operations ceased production.
The Bogoso refractory open pit operation was closed in 2015; it hosts 1.76 million ounces of measured and indicated mineral resources and 0.07 million ounces of inferred resource.
About Golden Star Resources
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 operation areas.