Golden Star To Be Acquired By Chinese Mining Firm Chifeng Jilong In A US$470 Million All-Cash Deal

Golden Star Resources Ltd. (TSX: GSC) announced today that it has entered into a definitive agreement with Chinese mining company Chifeng Jilong Gold Mining Co. (SSE: 600988) in which the latter is set to acquire the Canadian firm. The acquisition deal is reported to be for a total consideration of approximately $470 million.

Under the agreement, the Chinese mining firm agreed to acquire all of the outstanding Golden Star shares at US$3.91 per share, which represents a 24.1% premium over the company’s average price on the NYSE as of Friday.

The acquisition will include the Canadian firm’s operation of the Wassa underground mine in the Western Region of Ghana. “This offer, and the healthy premium being paid relative to recent trading levels, reflect the progress made in defining the future growth profile at Wassa as well as the repositioning of Golden Star with a streamlined corporate and financial structure,” said Golden Star CEO Andrew Wray.

The Chinese mining firm said that it intends to “invest significant financial and human capital into Wassa to realize the mines’ full potential” as part of expanding its footprint into West Africa.

The transaction already scored the approval of both firms’ boards and will now be up for the approval of the shareholders. The transaction is expected to close in January 2022.

Earlier in October, lithium-focused mining firm Neo Lithium was also set to be acquired by Chinese mining firm Zijin Mining for $960 million in an all-cash transaction.

Golden Star Resources last traded at $3.87 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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