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Golden Star Resources and its wholly-owned subsidiary, Caystar Holdings have entered into an agreement with Future Global Resources and its major shareholder, Blue International, to 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 in Ghana to FGR, as supplemented by a letter agreement dated September 30, 2020.

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 and to bring forward the second deferred payment due in 2021 such that both staged payments will be made together on 31 May, 2021, some two months earlier than previously anticipated.

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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 $4.6 million will continue to fall due by no later than July 31, 2021.

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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 EPA) the amount agreed with the EPA by no later than March 30, 2021 or such later date as may be agreed between the EPA and FGR.