Golden Star announces receipt of Ghanaian Regulatory approval for Chifeng acquisition transaction
29-11-2021 11:26:55 | by: Bob Koigi | hits: 3421 | Tags:

Gold mining company Golden Star Resources Ltd has announced that the Ghanaian Ministry of Lands and Natural Resources has informed Chifeng Jilong Gold Mining Co., Ltd. that it has no objection to Chifeng becoming the controller of Golden Star (Wassa) Limited via Chifeng's subsidiary, Chijin International (Hong Kong) Limited and/or its assignee. GSWL is Golden Star's 90% owned subsidiary that holds the mineral rights relating to the Wassa gold mine.

 The no objection letter was issued in accordance with section 52 of the Minerals and Mining Act, 2006, (Act 703) and on the advice and recommendation of the Minerals Commission. The Ministry's approval of the transaction is subject to customary conditions.

Golden Star, Chifeng and the Purchaser entered into a definitive agreement dated October 31, 2021 (the "Arrangement Agreement") pursuant to which Chifeng, through the Purchaser and/or its assignee, has agreed to acquire all of the issued and outstanding common shares of Golden Star ("Golden Star Shares") by way of a statutory plan of arrangement ("Plan of Arrangement") under the Canada Business Corporations Act (the "Transaction"). Pursuant to and upon completion of the Transaction, holders of Golden Star Shares ("Golden Star Shareholders") will receive total consideration, payable in cash, of US$3.91 (equivalent to approximately C$4.85) per Golden Star Share (the "Consideration"), which equates to a total Transaction value of approximately US$470 million on a fully-diluted, in-the-money basis.