TORONTO, June 1, 2021 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE American: GSS) (TSX: GSC) (GSE:
GSR) ("Golden Star" or the "Company") announces that, on
May 31, 2021, the Company and its
wholly owned subsidiary, Caystar Holdings ("Caystar"), entered into
an agreement (the "Amending Agreement") with Future Global
Resources Limited ("FGR") and its major shareholder, Blue
International Holdings Limited ("BIH"), 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
("Bogoso-Prestea") 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 "Share Purchase Agreement"). All references herein
to "$" are to United States
dollars.
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.
Statements Regarding Forward-Looking Information
Some statements contained in this news release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and "forward looking
information" within the meaning of Canadian securities laws and
include but are not limited to, statements and information
regarding: the date at which FGR puts in place a new reclamation
bond with the EPA; and the receipt by Golden Star of the deferred consideration and/or
contingent payment, and the potential amount and timing
thereof. Generally, forward-looking information and
statements can be identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"believes" or variations of such words and phrases (including
negative or grammatical variations) or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative
connotation thereof. Investors are cautioned that forward-looking
statements and information are inherently uncertain and involve
risks, assumptions and uncertainties that could cause facts to
differ materially. Such statements and information are based on
numerous assumptions regarding present and future business
strategies and the environment in which Golden Star will operate in the future,
including the price of gold, anticipated costs and ability to
achieve goals. Forward-looking information and statements are
subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, performance or
achievements of Golden Star to be
materially different from those expressed or implied by such
forward-looking information and statements, including but not
limited to: gold price volatility; discrepancies between actual and
estimated production; mineral reserves and resources and
metallurgical recoveries; mining operational and development risks;
liquidity risks; suppliers suspending or denying delivery of
products or services; regulatory restrictions (including
environmental regulatory restrictions and liability); actions
by governmental authorities; the speculative nature of gold
exploration; ore type; the global economic climate; share price
volatility; foreign exchange rate fluctuations; risks related to
streaming agreements and joint venture operations; the availability
of capital on reasonable terms or at all; risks related to
international operations, including economic and political
instability in foreign jurisdictions in which Golden Star operates; risks related to current
global financial conditions including financial and other
risks resulting from the impact of the COVID-19 global pandemic;
actual results of current exploration activities; environmental
risks; future prices of gold; possible variations in mineral
reserves and mineral resources, grade or recovery rates; mine
development and operating risks; an inability to obtain power for
operations on favorable terms or at all; mining plant or equipment
breakdowns or failures; an inability to obtain products or services
for operations or mine development from vendors and suppliers on
reasonable terms, including pricing, or at all; public health
pandemics such as COVID-19, including risks associated with
reliance on suppliers, the cost, scheduling and timing of gold
shipments, uncertainties relating to its ultimate spread, severity
and duration, and related adverse effects on the global economy and
financial markets; accidents, labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; litigation risks; the quantum and timing of receipt of
the proceeds from the sale by the Company of its interest in
Bogoso-Prestea; and risks related to indebtedness and the service
of such indebtedness. Although Golden
Star has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information and statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that future developments
affecting the Company will be those anticipated by
management. Please refer to the discussion of these and other
factors in Management's Discussion and Analysis of financial
conditions and results of operations for the year ended
December 31, 2019 and in our annual
information form for the year ended December
31, 2019 as filed on SEDAR at www.sedar.com. The
forecasts contained in this press release constitute management's
current estimates, as of the date of this press release, with
respect to the matters covered thereby. We expect that these
estimates will change as new information is received. While
we may elect to update these estimates at any time, we do not
undertake any estimate at any particular time or in response to any
particular event.
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SOURCE Golden Star Resources Ltd.