Golden Star To Sell Shares To La Mancha

Tim Baker, GSR board chair

The Board of Golden Star Resources (GSR) Limited is seeking the approval of shareholders to issue to La Mancha Holding or its affiliate, common shares of GSR totaling 163,210,500.

The subscription, which represents approximately 30 percent of the issued and outstanding common shares, is at a purchase price of $0.77 per share.

According to Tim Baker, chair of the board of GSR, in a press release issued on the proposal, dated 22nd August, 2018, shareholders would vote on the motion on Monday, September 17, 2018 in Toronto, Ontario.

“The  Board  of  Directors  believes  that  La  Mancha’s  strategic  investment  in  Golden  Star  will  support  Golden  Star’s  growth  as  a  leading  African  gold producer.

“La  Mancha’s  track -record  of  creating  sustainable  growth  makes  it  an  excellent  partner  for  Golden  Star  and  the  proposed  strategic investment  will strengthen Golden Star’s  balance sheet and will provide us with a funding position to expedite  internal  growth  and seize external opportunities.

The proposed investment is expected in particular to provide a funding position for Golden Star to accelerate xploration activities at GSR’s Wassa and Prestea operations.

“Golden  Star  recently  reported  a  147 percent  increase  in Wassa’s  inferred  mineral  resources  to  5.2  million  ounces  of  gold  and  as  there  is extensive under utilized capacity in both of our processing plants, there is strong potential for Golden Star to expand our annual production rate.”

After  careful  consideration,  the company said its  board of  directors  has  unanimously  recommended  that shareholders  vote  for  the  private placement resolution and vote for the Consolidation Resolution.

 

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