Golden Star announces amendment of Bogoso-Prestea Mine Sale Agreement

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

The agreement is about the sale of Golden Star’s 90 per cent 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 Resources said.

The company said the $5 million payment that was due on March 30, 2021, will now be paid 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 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 under a transition agreement dated September 30, 2020) will continue to fall due by no later than July 31, 2021.

It added that under 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.

Source: GNA