Golden Star Resources
Wassa Underground Golden Star Resources Ghana
Triple-listed Golden Star Resources subsidiary, Golden Star Limited (GSWL) has signed a letter for a US$25 million secured loan facility with Ecobank Ghana.

GSWL has twelve months from the date of the commitment letter to draw-down the facility, if it wishes to do so, and the facility will be repayable within 60 months of initial draw-down.

There are no early prepayment penalties. Interest on amounts drawn under the facility would be payable monthly at three month LIBOR plus a spread of 8% payable in arrears.

Golden Star Resources anticipates that any draw-downs from the facility would be used for general working capital purposes.

[quote]“Arranging this financing facility is another building block in Golden Star Resources’ transition into a low risk, mid-tier gold producer. We are continuing to strengthen the company on all fronts and ensuring we have access to low cost capital in advance of any such need is part of this process,” comments Sam Coetzer, president and CEO of Golden Star Resources.

Golden Star Resources will celebrate true operational transformation at both its mines this year. Not only did its Wassa Underground mine achieve commercial production in January this year, but its Prestea Underground mine is set to follow suit in mid-2017 – enabling the company to deliver higher grades and recoveries with substantially improved capital efficiency

Golden Star Resources’ current and future mining potential has always been significant. The company sits on and owns a large track of land – more than 1 100 km² of land on the Ashanti Gold Belt in the western region of Ghana, surrounded by some of the country’s major gold producers including Newmont, Gold Fields, Kinross, Perseus Mining and Asanko.

Coetzer stated in January that the achievement of commercial production at Wassa Underground marks the successful completion of a 17-month construction period.

“It is also another important milestone in our transformation into a high grade, non-refractory gold producer. Golden Star Resources anticipates that it will benefit from Wassa Underground’s lower cost production resulting from the higher grade ore being fed into the Wassa processing plant,” he pointed out.

Feature image credit: Golden Star Resources

(Wassa Underground mine in Ghana)