The Wassa underground gold mine produced 35,519 oz. in Q2 2018 as resources in the pit were exhausted. (Image: Golden Star Resources)
TORONTO – Golden Star Resources is getting a cash injection of $125 million from La Mancha Holding of Luxembourg. The deal creates a long term, strategic relationship between the two companies.
Golden Star will use the funds to accelerate development at the Wassa and Prestea underground gold projects in Ghana, to upgrade resources, and for potential future acquisitions.
La Mancha is offering a total of $125.7 million cash through a private placement. Golden Star will then issue approximately 163.2 million common shares, giving La Mancha a 30% interest in Golden Star. The value of La Mancha’s investment equates to a price of $0.77 per share, a 14% premium to the 30-day volume weighted average price at the end of July. La Mancha will nominate three directors to the Golden Star board.
Visit www.GSR.com to read the latest corporate presentation.