Host Communities in and around the Golden Star Resources Limited’s Bogoso- Prestea Mine stand to benefit greatly, as the company concludes a multi-million dollar sale of its interest in the mine. A new investor, Future Global Resources Limited (FGR) is taking over the mine with a 90 percent stake. The transaction is expected to be closed by September 30 this year.
The purchase price as announced by Golden Star Resources Limited, is $95 million and is expected to be paid in tranches
- Consideration of US$30 million comprising of US$5 million of cash and the assumption by FGR of approximately US$25 million of negative working capital is payable at closing.
- US$10m of cash is payable on 31 July 2021.
- US$15m of cash is payable on 31 July 2023.
President and CEO of Golden Star, Andrew Wray in a zoom meeting with the media, reiterated the commitment expressed by the new investor to retain and work with established frameworks that supports community relations and development.
“To me this is one of the big strengths of the mine”, said Mr. Wray in a response to a question about the interest FGR has with inheriting the frameworks.
He added that; “FGR are really interest in that, and they will very much like to continue them… it is something they feel quite strong about.”
Ahmed-Salim Adam, General Manager at Golden Star, Bogoso-Prestea Mine underscored the significance of this transaction. He mentioned that anticipated capital injections would transform their operations and thus improve their cashflow.
“…we’ve been generating negative cash-flows for so long and it’s time to make the turnaround. We are excited here, the workforce is excited to have FGR come on board, and we look forward to crystalizing this deal in the next couple of months.”