Golden Star Resources restructure conditions for sale of Bogoso Prestea Mine to Future Global Resources
Golden Star Resources (GSR), former owners of the Bogoso-Prestea Mine, has restructured the conditions or ‘considerations’ made in the sale of the mine to current owners, Future Global Resources (FGR).
A press release issued by the GSR announcing the restructuring, the gold firm asserts the new ‘consideration’ made for the purchase of the Bogoso-Prestea mine by FGR represents a full and final settlement of all existing and future claims by GSR.
According to GSR, the deferred consideration (the “Deferred Consideration”) detailed in its Share Purchase Agreement (SPA) with FGR will now be replaced by a net smelter return (“NSR”) agreement which will trigger certain payments once 100,000 ounces of gold have been produced from the Prestea underground mine.
”The NSR payments are capped at $35 million, equaling the value of the initial Deferred Consideration and the working capital balancing payment that were defined in the Share Purchase Agreement,” reads part of GSR’s press statement.
Speaking on the new agreement made between GSR and FGR with regards to the sale and acquisition of the Bogoso Prestea Mine, Chief Executive Officer of GSR, Andrew Wray said; “By working with the FGR team we have been able to conclude discussions on an amicable and cooperative basis. The future of the Bogoso-Prestea mine, its workers and other stakeholders was our priority.”
“We have agreed to restructure the acquisition consideration into an NSR agreement, in order to better align any payments owed to Golden Star with the performance of the Prestea underground mine operation.
“While the quantum of the Sulphides Contingent Payment remains unchanged, we have agreed to provide FGR with further financial flexibility for the development of the refractory resource by adjusting the timing of the payments associated with the sulphide project to allow time for production to reach 500,000 ounces before we realize the full contingent payment.”
“We are pleased to reach a full and final settlement of all existing and future claims, as this will allow both the Golden Star and FGR management teams to focus fully on their respective assets to deliver the best outcome for all stakeholders.”
Read details of press release below:
pdf (16) by Fuaad Dodoo on Scribd
