Accra, Ghana-focused miner Golden Star Resources says China’s Chifeng Jilong Gold Mining has agreed to purchase all of the company’s shares for a total of $470 million in cash.
The Transaction will be consummated through Chifeng’s majority-controlled subsidiary, Chijin International (Hong Kong) Limited.
In a statement, Golden Star CEO Andrew Wray said the deal would help to deliver growth at Wassa.
According to the statement, shareholders of GSR under the transaction would receive total consideration, payable in cash of $3.91 per Golden Star Share.
“The consideration represents a 24.1 percent premium over the closing price of the Golden Star Shares on the New York Stock Exchange (NYSE) as of October 29, 2021, a 37.2 percent premium based on the volume-weighted average price of the Golden Star Shares on the NYSE over the 20 trading days ending October 29, 2021, and a 51.5 percent premium based on the volume-weighted average price of the Golden Star Shares on the NYSE over the 60 trading days ending October 29, 2021,” the statement said.
The sale of GSR to Chifeng Jilong Gold, the statement said, had been unanimously approved by the Board of Directors of Golden Star, adding that it was important that Golden Star Shareholders unanimously vote in favour of the acquisition of the company.
“This offer, and the healthy premium being paid relative to recent trading levels, reflect the progress made in defining the future growth profile at Wassa as well as the repositioning of Golden Star with a streamlined corporate and financial structure.
We believe that the transaction will benefit all of our stakeholders, with shareholders receiving an attractive premium in return for the future growth potential, and with Wassa forming part of Chifeng’s larger portfolio of gold mines there will be a larger capital base to help deliver that growth,” the statement said.
“Chifeng has a proven track record as a responsible operator and is well positioned to build on the platform and reputation we have worked hard to establish. We look forward to working with Chifeng over the coming weeks to close this transaction and transition to the new team,” Andrew Wray, CEO of GSR said.
“We intend to invest significant financial and human capital into Wassa to realize the mines’ full potential and in doing so expand our operating footprint into West Africa.
Chifeng has an established track record as a safe and sustainable operator and is focused on creating value that will provide long-term benefits to all of our stakeholders including the people of Ghana,” Lyu Xiaozhao, President of Chifeng Jilong Gold said.
Subject to the condition’s precedent being met, the transaction is expected to close in January 2022.
Source: Ghana News Agency
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