TORONTO, July 29, 2015 /PRNewswire/ - Golden Star is
pleased to announce that yesterday it successfully closed the
$150 million financing with
Royal Gold, Inc. ("RGI") and its
wholly-owned subsidiary RGLD Gold AG ("RGLD") announced on
May 7, 2015.
The $150 million financing
consists of a $130 million stream
transaction with RGLD and a further $20
million term loan from RGI. Golden Star expects to receive the initial
upfront payment of $40 million from
RGLD in relation to the stream and a further $20 million from RGI in a term loan by close of
business today.
Golden Star will immediately
retire the full outstanding $38
million on its Ecobank loan I, once funds have been received
from RGI and RGLD. The initial upfront payment was reduced
from $55 million to $40 million as the Company's drew down
$15 million on its existing
$25 million Ecobank loan II in
advance of the conclusion of the financing. The full amount
of the stream transaction remains $130
million and the effective date remains April 1, 2015.
Funds received will facilitate development of Wassa and Prestea
underground mines which are expected to be in production by late
2016. Work on both of these projects is progressing
well. The remaining finance from the stream transaction is
expected to be received incrementally as the projects' construction
advances. The Company expects to receive the remaining
$90 million in quarterly payments
between September 2015 and
September 2016.
The Company's financial results will be released after market
close today, July 29, 2015, at which
time a full update on the development projects will be
provided.
Golden Star's financial advisor
with respect to the gold stream and loan transactions was BMO
Capital Markets.
Company Profile:
Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR)
("Golden Star" or the "Company") is an established gold mining
company that holds a 90% interest in the Wassa, Prestea and Bogoso
gold mines in Ghana. In 2014, Golden
Star produced 261,000 ounces of gold. The Company is
financed to pursue brownfield development projects at its Wassa and
Prestea mines which are expected to transform these mines into
lower cost producers from 2016 onwards. As such, Golden Star offers investors leveraged exposure
to the gold price in a stable African mining jurisdiction with
significant development upside potential.
Cautionary note regarding forward-looking information
This report contains "forward looking information" within the
meaning of applicable Canadian securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995, concerning the business,
operations and financial performance and condition of Golden Star. 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 (or grammatical variations) thereof.
Forward-looking information and statements include, but are not
limited to, information or statements with respect to: Golden Star's transformation to a low cost
non-refractory gold producer and the timing thereof and the timing
of production from the Wassa and Prestea underground mines.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. 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: 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; risks related to
joint venture operations; actual results of current exploration
activities; environmental risks; future prices of gold; possible
variations in Mineral Reserves, grade or recovery rates; mine
development and operating risks; 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 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 such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Forward-looking information and
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company's
operating environment. Golden Star
does not undertake to update any forward-looking information and
statements that are included in this news release except in
accordance with applicable securities laws.
SOURCE Golden Star Resources Ltd.