The sale will allow the company to accelerate the growth and development of Wassa mine in the country
Bogoso-Prestea gold mine is about 40km from the Wassa gold mine. (Credit: Erik Stein/Pixabay)
Golden Star Resources has signed a binding agreement to sell its Bogoso-Prestea gold mine in Ghana for a purchase price of up to $95m.
Future Global Resources (FGR), London-based mining company, will acquire 90% stake in the gold mine for purchase price of $55m with a further contingent component of about $40m.
Operations at the Prestea underground operation are scheduled to continue that includes the use of alimak mining on 24 Level and long hole open stopping mining activities on the newly developed 17 Level.
The mine is situated in south-western Ghana, about 40km from the Wassa gold mine and the sale will allow the company to accelerate the growth and development of Wassa mine and increase exploration on its wider Wassa-HBB project area.
The Bogoso-Prestea open pits and the Prestea underground gold mine recently delivered production. Prestea became an underground-focused operation in the second half of 2018.
Transaction is expected to be concluded by 30 September 2020
Golden Star president and CEO Andrew Wray said: “The sale strengthens our balance sheet by providing a cash inflow of $30m by 2023 and Golden Star will be able to participate in the upside offered by the Bogoso Sulfide Project through the Contingent Payment mechanism which could deliver up to a further $40 million to the business.”
The deal is expected to be concluded by no later than 30 September 2020, after receiving the required government approvals.
The conditions include approval from the relevant Minister in Ghana and the restructuring of the Royal Gold streaming agreement and Macquarie loan facility.
In 2018, La Mancha announced an investment of $125.7m to acquire a 30% stake in Golden Star Resources.