Ghana approves acquisition of Golden Star Resources by Chifeng Gold
The Government of Ghana (GoG) through the Ministry of Lands and Natural Resources, has given its approval for the acquisition of Golden Star Resources (GSR) by Chinese gold mining firm, Chifeng Jilong Gold.
The Ministry in approving the transaction and acting on the advice and recommendation of the Minerals Commission issued a no-objection letter in accordance with section 52 of the Minerals and Mining Act, 2006, (Act 703).
The Ministry’s approval of the transaction is, however, subject to customary conditions.
Chifeng acquires GSR
The announcement of the acquisition of GSR by Chifeng was first announced on November 1, 2021, via a press release by GSR.
The acquisition by Chifeng Jilong Gold, per the information contained in the release, involves an all-cash offer of $470 million for GSR.
“Golden Star Resources and Chifeng Jilong Gold Mining are pleased to announce that they have entered into a definitive agreement pursuant to which Chifeng has agreed to acquire all of the issued and outstanding common shares of Golden Star by way of a statutory plan of arrangement under the Canada Business Corporations Act,” revealed GSR in a press release available to norvanreports.com.
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According to GSR, shareholders of GSR pursuant to the transaction will receive total consideration, payable in cash of $3.91 per Golden Star Share which equates to approximately $470 million on a fully-diluted, in-the-money basis.
The sale of GSR to Chifeng Jilong Gold, the company notes, has been unanimously approved by the Board of Directors of Golden Star and is therefore recommending that Golden Star Shareholders unanimously vote in favour of the acquisition of the company.
Transaction Advisors
Golden Star has engaged Canaccord Genuity Corp. as its exclusive financial advisor as well as Fasken Martineau DuMoulin LLP and Davis Graham & Stubbs LLP as its respective Canadian and United States legal advisors.
Canaccord Genuity Corp. provided a fairness opinion to Golden Star’s Board of Directors. Chifeng has engaged Stifel Nicolaus Canada Inc. and First Asia Group Ltd. as its financial advisors as well as Goodmans LLP as its legal advisor.
Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalisation of approximately US$4.4 billion.
It operates five mining assets, including the world-class Sepon gold mine in Laos. In 2018, Chifeng acquired Sepon before undertaking significant capital expenditures to redevelop the gold processing facility in order to double its future gold production.
Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana, West Africa. Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from the Wassa mine. As the winner of the Prospectors & Developers Association of Canada 2018 Environmental and Social Responsibility Award, Golden Star remains committed to leaving a positive and sustainable legacy in its areas of operation.
