PR Newswire
TORONTO
,
July 19, 2021
/PRNewswire/ –
Golden Star Resources Ltd.
(NYSE American: GSS) (TSX: GSC) (GSE: GSR) (“Golden Star” or the “Company”) announces that Future Global Resources Limited (“FGR”) has defaulted on its obligation to pay the Company’s wholly-owned subsidiary, Caystar Holdings (“Caystar”),
$15 million
of the purchase price relating to the sale of
Golden Star’s
90% interest in the Bogoso-Prestea Gold Mine to FGR under the share purchase agreement dated
July 26, 2020
, as supplemented by a letter agreement dated
September 30, 2020
, and amended by a first amending agreement dated
March 28, 2021
and a second amending agreement dated
May 31, 2021
(collectively, the “Share Purchase Agreement”). FGR has claimed that it is entitled to set-off its obligation to make such payment under the Share Purchase Agreement as a result of various alleged breaches of the Share Purchase Agreement, a claim which
Golden Star
and Caystar believe to be completely without merit. Caystar has also demanded that FGR’s major shareholder, Blue International Holdings Limited (“BIH”), pays the amount of
$15 million
pursuant to the guarantee made by BIH in the Share Purchase Agreement. In the event payment is not received from BIH,
Golden Star
and Caystar are evaluating all available avenues of recourse in order to seek full recovery of amounts owed by FGR under the Share Purchase Agreement.
All references herein to “$” are to
United States
dollars.
For further information, please visit
www.gsr.com
Company Profile:
Golden Star
is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of
Ghana
, West Africa. Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange,
Golden Star
is focused on delivering strong margins and free cash flow from the Wassa mine. As the winner of the Prospectors & Developers Association of
Canada
2018 Environmental and Social Responsibility Award,
Golden Star
remains committed to leaving a positive and sustainable legacy in its areas of operation.
Statements Regarding Forward-Looking Information
Some statements contained in this news release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward looking information” within the meaning of Canadian securities laws and include but are not limited to, statements and information regarding: actions that may be taken to seek payment and the recovery of amounts owed to Caystar under the Share Purchase Agreement, and the receipt by
Golden Star
of the deferred consideration and/or contingent payment under the Share Purchase Agreement, and the potential amount and timing thereof. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Investors are cautioned that forward-looking statements and information are inherently uncertain and involve risks, assumptions and uncertainties that could cause facts to differ materially. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which
Golden Star
will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of
Golden Star
to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: gold price volatility; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical recoveries; mining operational and development risks; liquidity risks; suppliers suspending or denying delivery of products or services; regulatory restrictions (including environmental regulatory restrictions and liability); actions by governmental authorities; the speculative nature of gold exploration; ore type; the global economic climate; share price volatility; foreign exchange rate fluctuations; risks related to streaming agreements and joint venture operations; the availability of capital on reasonable terms or at all; risks related to international operations, including economic and political instability in foreign jurisdictions in which
Golden Star
operates; risks related to current global financial conditions including financial and other risks resulting from the impact of the COVID-19 global pandemic; actual results of current exploration activities; environmental risks; future prices of gold; possible variations in mineral reserves and mineral resources, grade or recovery rates; mine development and operating risks; an inability to obtain power for operations on favorable terms or at all; mining plant or equipment breakdowns or failures; an inability to obtain products or services for operations or mine development from vendors and suppliers on reasonable terms, including pricing, or at all; public health pandemics such as COVID-19, including risks associated with reliance on suppliers, the cost, scheduling and timing of gold shipments, uncertainties relating to its ultimate spread, severity and duration, and related adverse effects on the global economy and financial markets; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; litigation risks; the quantum and timing of receipt of the proceeds from the sale by the Company of its interest in Bogoso-Prestea; and risks related to indebtedness and the service of such indebtedness. Although
Golden Star
has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in Management’s Discussion and Analysis of financial conditions and results of operations for the year ended
December 31, 2020
and in our annual information form for the year ended
December 31, 2020
as filed on SEDAR at
www.sedar.com
. The forecasts contained in this press release constitute management’s current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake any estimate at any particular time or in response to any particular event.
View original content to download multimedia:
https://www.prnewswire.com/news-releases/golden-star-provides-update-regarding-the-sale-of-bogoso-prestea-301336239.html
SOURCE Golden Star Resources Ltd.
