TORONTO – Golden Star Resources has closed a previously announced bought deal financing of almost 31.4 million common shares at a price of $1.10 per share for gross proceeds of $34.5 million. The offering was led by Clarus Securities and included National Bank Financial, BMO Capital Markets, Scotia Capital, and CIBC World Markets.
Installing ground support underground. (Golden Star Resources)
Golden Star intends to use the net proceeds for exploration, capital expenditures at the Wassa and Prestea gold mines in Ghana, partial repayment of its 5% convertible debentures, working capital, and general corporate expenses.
The Wassa mine is currently in production with 2017 guidance of 145,000 to 160,000 oz of gold at a cash operating cost of between US$830 to US$915 per oz.
Mining at the Prestea project is currently suspended, but Golden Star is refurbishing the underground workings for the restart of production. Guidance for 2017 is 110,000 to 120,000 oz at a cash operating cost of US$715 to US$780 per oz.
Details of both projects is available at www.GSR.com.