Golden Star announces Amendment of Agreement for the Sale of Bogoso-Prestea Mine

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Photo: Bogoso-Prestea Mine. Credit: Mining News and Intelligence

Golden Star Resources has entered into an agreement with Future Global Resources (FGR) Limited and its major shareholder, Blue International Holdings Limited to amend a share purchase agreement dated July 26, 2020.

This is related to the sale of Golden Star’s 90% interest in the Bogoso-Prestea Gold Mine in Ghana to FGR, as supplemented by a letter agreement dated September 30, 2020.

“The staged payments that form the deferred consideration, as outlined in the Share Purchase Agreement, have now been reprofiled to allow time for FGR to complete the environmental bonding process for Bogoso-Prestea and to bring forward the second deferred payment due in 2021 such that both staged payments will be made together on 31 May, 2021, some two months earlier than previously anticipated,” a statement from Golden Star said.

According to the company, the deferred consideration payments will now fall due as follows:

  • The $5 million payment that was due on March 30, 2021 will now be payable by no later than May 31, 2021;
  • The $10 million payment that was due to be paid on July 31, 2021 will be brought forward for payment by no later than May 31, 2021; and
  • An amount of approximately $4.6m (comprised of the working capital balancing payment of approximately $4.3 million and fees of approximately $0.3 million for services provided by Caystar to FGR pursuant to a transition agreement dated September 30, 2020) will continue to fall due by no later than July 31, 2021.

It added that pursuant to the terms of the Amendment Agreement, FGR will put in place a reclamation bond in respect of its environmental rehabilitation obligations for Bogoso-Prestea, and pay to the Environmental Protection Agency of Ghana the amount agreed with the EPA by no later than March 30, 2021 or such later date as may be agreed between the EPA and FGR.

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