TORONTO, March 30, 2017 /PRNewswire/ - Golden Star
Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star"
or the "Company") announces that its subsidiary, Golden Star (Wassa) Limited ("GSWL"), has signed
a commitment letter for a $25 million
secured loan facility (the "Facility") with Ecobank Ghana Limited
("Ecobank").
GSWL has twelve months from the date of the commitment letter to
drawdown the Facility, if it wishes to do so, and the Facility will
be repayable within 60 months of initial drawdown. There are
no early prepayment penalties. Interest on amounts drawn under the
Facility would be payable monthly at three month LIBOR plus a
spread of 8.0% payable in arrears.
The Company anticipates that any drawdowns from the Facility
would be used for general working capital purposes.
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"Arranging this financing facility is another building block
in Golden Star's transition into a
low risk, mid-tier gold producer. We are continuing to
strengthen the Company on all fronts and ensuring we have access to
low cost capital in advance of any such need is part of this
process."
All monetary amounts refer to United States dollars unless otherwise
indicated.
Company Profile
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines situated on the prolific Ashanti Gold
Belt in Ghana, West Africa. Listed on the NYSE MKT, the TSX,
and the GSE, Golden Star is
strategically focused on increasing operating margins and cash flow
through the development of its two high grade, low cost underground
mines both in conjunction with existing open pit operations. The
Wassa Underground Gold Mine commenced commercial production in
January 2017 and the Prestea
Underground Gold Mine is expected to achieve commercial production
in mid-2017. Gold production in 2017 is expected to be
255,000-280,000 ounces with cash operating costs of $780-860 per ounce.
Cautionary note regarding forward-looking information
Some statements contained in this news release are "forward
looking information" within the meaning of Canadian securities laws
and "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Generally,
forward-looking statements and information can be identified by the
use of forward-looking terminology such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", "believes" or variations of such words
and phrases (including negative or grammatical variations) or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or
the negative connotation thereof. . Forward looking statements and
information include, but are not limited to, statements and
information regarding: the use of drawdowns under the Facility; the
timing of the commencement of commercial production at the Prestea
Underground Gold Mine; 2017 production guidance; and the ability to
transition into a high grade, low cost producer. Investors are
cautioned that forward-looking statements are inherently uncertain
and involve risks, assumptions and uncertainties that could cause
actual facts to differ materially. Factors that could cause actual
results to differ materially include: risks related to
international operations, including economic and political
instability in foreign jurisdictions in which Golden Star operates; risks related to current
global financial conditions; actual results of current exploration
activities; environmental risks; future prices of gold; possible
variations in mineral reserves, grade or recovery rates; mine
development and operating risks; accidents, labor disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities and risks related to
indebtedness and the service of such indebtedness. There can be no
assurance that future developments affecting the Company will be
those anticipated by management. Please refer to the discussion of
these and other factors in Management's Discussion and Analysis of
financial conditions and results of operations for the year ended
December 31, 2016. Additional and/or
updated factors will be included in our annual information form for
the year ended December 31, 2016
which will be filed on SEDAR at www.sedar.com. The forecasts
contained in this press release constitute management's current
estimates, as of the date of this press release, with respect to
the matters covered thereby. We expect that these estimates will
change as new information is received. While we may elect to update
these estimates at any time, we do not undertake to update any
estimate at any particular time or in response to any particular
event.
SOURCE Golden Star Resources Ltd.