“We are pleased to complete the previously announced sale of the Bogoso-Prestea gold mine says Andrew Wray, President and CEO of Golden Star.
“This transaction is transformational for Golden Star’s balance sheet and allows us to focus fully on further developing Wassa and realizing its potential.
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“We are now able to concentrate our financial and technical resources on accelerating the delivery of value from Wassa as it continues to develop into a large-scale, long-life and cash generative underground mine.
“We now look forward to completing a Preliminary Economic Assessment on the development options for the ore body by the end of the year. In doing so we can subsequently provide the market with greater clarity around the potential path and timing for future growth at the asset.
“The sale strengthens our balance sheet by providing a cash inflow of $30 million by 2023 and removing negative working capital and liabilities from our balance sheet.
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“Given the resulting improvement in the financial position of the Company, we expect to now be able to accelerate our investment at Wassa and within our existing exploration pipeline and look for other opportunities to further expand our business.
Bogoso-Prestea will also benefit from having an owner solely focused on delivering the turnaround of the underground operation and assessing the significant potential of the sulfide resources.
“As a result, we see this transaction as positive for both FGR and Golden Star, our respective employees, Ghana, the host communities and all of our other stakeholders.”
- Golden Star has completed the sale of Bogoso-Prestea to FGR
- The Bogoso-Prestea subsidiaries have now been transferred to FGR
- The initial $5 million cash consideration due at closing has been deferred by up to six months to March 30, 2021 pending finalization of FGR’s reclamation bonding process, as described below.
- The subsequent staged payments, totaling $25 million, and contingent payments of $20 to $40 million ensure that FGR is able to focus its investment capacity on the business whilst providing Golden Star with exposure to Bogoso-Prestea’s long-term growth 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