Chifeng Jilong Gold to acquire Golden Star for $470 million

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(Kitco News) - Golden Star Resources (TSX:GSC) (NYSE: GSS) announced today that Chifeng Jilong Gold Mining has agreed toacquire all of the issued and outstanding common shares of Golden Star by wayof a statutory plan of arrangement under the Canada Business Corporations Act.

According to a press-release,pursuant to the transaction, holders of Golden Star shares will receive totalconsideration, payable in cash, of US$3.91 per Golden Star share, which equatesto approximately US$470 million on a fully-diluted, in-the-money basis.

The company said that the considerationrepresents a 24.1% premium over the closing price of the Golden Star Shares onthe NYSE American as at October 29, 2021, and a 37.2% premium based on thevolume-weighted average price of the Golden Star Shares on the NYSE Americanover the 20 trading days ending October 29, 2021.

Importantly, Golden Starnoted that its Board of Directors has unanimously approved the transaction andis unanimously recommending that Golden Star Shareholders vote in favour of thetransaction.

CEO Andrew Wray commented, "Thisoffer, and the healthy premium being paid relative to recent trading levels,reflect the progress made in defining the future growth profile at Wassa aswell as the repositioning of Golden Star with a streamlined corporate andfinancial structure."

"Chifeng has a proven trackrecord as a responsible operator and is well positioned to build on theplatform and reputation we have worked hard to establish. We look forward toworking with Chifeng over the coming weeks to close this transaction andtransition to the new team," he added.

Golden Star is gold miningcompany that owns and operates the Wassa underground mine in the Western Regionof Ghana, West Africa.

Chifeng is an internationalgold mining company listed on the Shanghai Stock Exchange with a marketcapitalization of US$4.3 billion. It operates five mining assets, including theworld-class Sepon gold mine in Laos.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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