Future Global Resources (FGR), owners of Bogoso Prestea mine, says it has discovered material inaccuracies in information provided by Golden Star Resources (GSR), which FGR relied upon in deciding to acquire the Bogoso Prestea mine.
In a statement, it said the financial impact of the inaccuracies is significant and that FGR will continue to investigate the imprecisions. It also pledged steps to secure the mine’s future.
“FGR notified GSR of the inaccuracies last week and required GSR to indemnify it in respect of the resulting financial losses it has sustained, in accordance with the provisions of the Bogoso Prestea purchase agreement,” the statement read.
Separately, FGR has recently stepped in to settle an outstanding and ongoing employee dispute relating to severance payments owed to staff at Bogoso Prestea which resulted in repeated industrial actions. In the absence of GSR’s participation, FGR negotiated with the staff to reach an agreement on severance which resulted in a peaceful return to operations and the cessation of the ongoing legal action.
The adds that that FGR claims the cost of this settlement from GSR given that GSR has responsibility for this matter under the purchase agreement.
“In light of the above, FGR was not contractually obliged to make the payments that would otherwise be due on July 16, 2021 and will not be making the payment otherwise due on July 31, 2021,” it noted.
On July 27, 2020 Golden Star Resources Ltd. announced that it had entered into a binding agreement for the sale of its 90 percent interest in the Bogoso-Prestea Gold Mine in Ghana to Future Global Resources Limited for a purchase price of US$55 million with a further contingent component of up to US$40 million.