Golden Star Resources Ltd. has announced that it has completed two transactions with EURO Ressources SA for net proceeds to Golden Star of $8.1 million.
Golden Star has completed two transactions with EURO Ressources SA (“EURO”), which were previously announced on March 27, 2007. The completion of the sale of the Gross Rosebel Additional Participation Right to EURO for $4.4 million and the payment by EURO of approximately $3.7 million of debt and interest owed to Golden Star
are expected to contribute approximately $8.1 million of cash flow and, of which, $7.4 million will be pre-tax earnings in the fourth quarter.
Golden Star continues to hold approximately 1.4 million shares of EURO which equates to an interest of approximately 2% of EURO's outstanding shares. EURO's financial statements, specifically its hedge book, are not consolidated in the Golden Star financial statements.
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management.