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.