Golden Star Resources Ltd. (NYSE American: GSS) (TSX: GSC) (GSE:
GSR) (“Golden Star” or the “Company”) is pleased to announce that it has entered into a binding agreement (the “Agreement”) for the sale of its 90% interest in the Bogoso-Prestea Gold Mine (“Bogoso-Prestea”) in Ghana to Future Global Resources Limited (“FGR”) for a purchase price of up to $95 million (the “Transaction”). All references herein to “$” are to United States dollars.
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
Future Global Resources (FGR) was established by its shareholders in 2020 to build a globally diversified mining company that invests in, develops, and operates long-life mineral resources, to stimulate economic development. Its initial focus is on Africa, leveraging the credentials of the board, executive and shareholders on that continent. FGR is committed to the principles of community and environmental sustainability. Its principal shareholder is Blue International Holdings Limited, a UK based private investment holding company and the largest investor in Joule Africa Limited, a
developer, owner and operator of sustainable power projects in sub Saharan Africa.
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 are now drawing to a close. 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 and could be restarted following a refurbishment of the refractory processing plant.