Chinese gold exploration and production company, Chifeng Jilong Gold Mining Company Ltd, has officially taken over the Wassa gold mine previously operated by Golden Star Resources in the Western Region.
The official take over by Chifeng Jilong culminated into an official handing over ceremony held on Monday, January 31, in the Wassa East District of the Western Region.
The official take over follows the delisting of GSR from the Ghana Stock Exchange (GSE) and the New York Stock Exchange and months of seeking regulatory approval from statutory authorities in Ghana and Canada.
Speaking at the handing over ceremony and touching on the recent explosion at the Appiatse Community, the Minister for Lands and Natural Resources, Samuel Jinapor stated government will hold all mining companies to observe highest safety standards in all levels of operations.
He said the President Akuffo-Addo led government has put in place adequate measures to review the entire health and safety regime of the mining industry to among others prevent future mining accidents in the country.
Jinapor indicated that as part of the conditions for the takeover of the Mine, Chifeng agreed to respect, and honour all existing contract of Golden Star Resources including employment contract and collective bargaining agreement.
He asserted that, “Let me assure all workers and the good people of Wassa that, government will work with the company to ensure that the right of all employees are protected adding that where necessary, severance packages are paid in accordance with the laws of Ghana and the existing collective bargaining agreement.”
The former CEO of Golden Star resources, Andrew Wray, said the deal will help to deliver socio-economic growth and promote brighter future at Wassa.
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He also underscored the importance of the Wassa Mine saying, “The excellent work by the workers of the Mines has helped to make the Mine a very attractive one hence the acquisition.
The occasion, which attracted dignitaries across the Mining Industry and some top government officials including the Western Regional Minister and the Deputy Minister in-charge of Mines, George Mireku Duker was also used to unveil a plaque amidst pomp and pageantry.
Chifeng Gold to complete acquisition of Golden Star Resources by end-January 2022
Chinese gold mining firm Chifeng Jilong Gold Mining Limited as expected, was to complete it’s acquisition of Golden Star Resources (GSR) by the end of January this year.
This followed the obtainment of the Final Order for Plan of Arrangement by GSR from the Ontario Superior Court of Justice.
The Final Order for Plan of Arrangement is an order approving the acquisition of GSR [a Canadian company] by Chifeng Gold Limited.
“Golden Star Resourcesis pleased to announce that it has obtained a final order from the Ontario Superior Court of Justice approving the Company’s previously announced plan of arrangement under Section 192 of the CanadaBusiness Corporations Act, involving the Company, Chifeng Jilong Gold Mining Ltd. pursuant to the arrangement agreement dated October 31, 2021, as amended by an amending agreement dated November 24, 2021,” stated GSR in a statement published on its website.
“The Arrangement is expected to be completed later in January 2022, subject to, among other things, receipt of all regulatory and stock exchange approvals, including in the People’s Republic of China and in Ghana, and the satisfaction or waiver of conditions precedent as set forth in the Arrangement Agreement,” it added.
The Transaction
Pursuant to the Arrangement Agreement, Chifeng, through Chijin and the Assignee have agreed to acquire all of the issued and outstanding Golden Star Shares. Pursuant to and upon completion of the Transaction, Shareholders will receive total consideration, payable in cash, of US$3.91 (equivalent to approximately C$4.85 as of October 31, 2021) per Golden Star Share, which equates to a total Transaction value of approximately US$470 million on a fully-diluted, in-the-money basis.
Upon completion of the Transaction, the Golden Star Shares are expected to be delisted from the NYSE American, the Toronto Stock Exchange and the Ghana Stock Exchange. In addition, it is expected that Golden Star will cease to be a reporting issuer under U.S., Canadian and Ghanaian securities laws following the completion of the 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.
Golden Star Profile
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.
Chifeng Profile
Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalization 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.
