Golden Star sells Guyana, Suriname holdings to Cambior
Stabroek News
May 26, 2002
Golden Star Resources has announced that it has sold its Suriname and Guyana holdings to Cambior Incorporated and by the end of next month, it is likely to finalise its purchase of one of Cambior's French Guiana holdings.
According to a report, Golden Star has completed the sale of its interests in the Gross Rosebel, Headleys and Thunder Mountain properties in Suriname, as well as its interests in Omai Gold Mines Ltd in Guyana, to Cambior. The sale of Cambior's interests in the Yaou, Dorlin and Bois Canon properties in French Guiana to Golden Star is expected to be finalised by June 30.
For the sale of the Gross Rosebel property, Golden Star received a total of US$5 million by the closing date, and will receive deferred payments totalling US$3 million by the fourth anniversary of closing, Golden Star said. In addition, Cambior will pay Golden Star a ten per cent royalty of the excess average quarterly market price above a gold price hurdle on the first seven millions ounces of gold production from Gross Rosebel. For soft and transitional rock, the report said, the gold price hurdle is US$300 per ounce, and US$50 more for hard rock.
The total consideration for the Headleys and Thunder Mountain properties comprises a deferred consideration of US$1 million, to be paid to Golden Star in the event that Cambior commences commercial mining from these properties.
Under the terms of the sale of its 30 per cent equity interest and preferred shares in Omai Gold Mines Ltd, Cambior assumed the unpaid portion of the non-interest-bearing loan made to Golden Star in December 1998. In addition, Golden Star received a release and waiver from Omai, Cambior and the Guyana Government in respect of all liabilities, of any nature, related to the Omai mines, Golden Star said.
Golden Star has a 90 per cent interest in the Bogosa/Prestea open pit gold mine in Ghana, a 45 per cent managing interest in the Prestea underground mine in Ghana, and is in the process of acquiring a 90 per cent interest in the Wassa gold project in Ghana. In addition, the company has other gold exploration interests in the Guiana Shield in South America and in West Africa.
Golden Star currently has approximately 64 million shares outstanding and is listed on the Toronto Stock Exchange under the symbol 'GSC' and trades on the OTC Bulletin Board under the symbol 'GSRSF'. It said these statements are both historical and forward-looking in nature.
The forward-looking statements involve risks and uncertainties including those relating to exploration, the establishment of reserves, the recovery of any reserves, future gold production, future costs of production, future permitting and future operations.