TORONTO, June 28, 2018 /CNW/ - Golden Star Resources Ltd.
(NYSE American: 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 $20 million
secured loan facility (the "Facility") with Ecobank Ghana Limited
("Ecobank").
The Company will use the Facility to repay in full its existing
$20 million medium term loan facility
with Royal Gold, Inc (the "Royal
Gold Loan") during the coming days. The repayment of the Royal Gold
Loan is beneficial for Golden Star
as it matures in July 2019 and is
subject to an excess cash flow provision, which requires the
Company to make mandatory repayments of 50% excess cash flow
beginning in 2018 until maturity. No excess cash flow payments
have been required to date, but the termination of the Royal Gold
Loan provides flexibility to the Company's financial position.
There are no prepayment penalties associated with the Facility.
The Facility will be repayable within 60 months of initial
drawdown. Interest on amounts drawn under the Facility is
payable monthly in arrears at an interest rate equal to three month
LIBOR plus a spread of 7.5% per annum.
Sam Coetzer, President and
Chief Executive Officer of Golden
Star, commented:
"This facility adds flexibility to our financial position and
enables us to maintain a stronger cash balance while we continue to
ramp up both the Wassa and Prestea underground operations. We
are continuing to strengthen the Company on all fronts and ensuring
we have access to low cost capital 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 in Ghana, West Africa. Listed on the NYSE American,
the Toronto Stock Exchange and the Ghanaian Stock
Exchange, Golden Star is focused on
delivering strong margins and free cash flow from its two high
grade, low cost underground mines. Gold production guidance for
2018 is 230,000-255,000 ounces at a cash operating cost per ounce
of $650-730. As the winner of the PDAC 2018
Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive
and sustainable legacy in its areas of operation.
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
benefits of refinancing the Royal Gold Loan; production guidance
and cash operating cost per ounce guidance for 2018; and the
ability to strengthen the Company on all fronts. 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 our annual information form for the year
ended December 31, 2017 which is
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.
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SOURCE Golden Star Resources Ltd.