https://www.engineeringnews.co.za

Chifeng Gold and unnamed partner to buy Golden Star for $470m

2nd November 2021

By: Reuters

  

Font size: - +

China's Chifeng Jilong Gold Mining, known as Chifeng Gold, on Monday said it and an unnamed co-buyer would purchase all of Ghana-focused miner Golden Star Resources for a total $470-million in cash.

The move is Chifeng's second attempt to gain a foothold in the West African country after walking away in April from a deal to buy Resolute Mining's Bibiani gold mine, saying it had not received timely information about the termination of the mining lease.

Chifeng said its Chijin International unit has agreed to buy 62% of Golden Star at $3.91 a share, equating to about $291-million. An unnamed third party will contribute a further $179-million and take a 38% stake, it added.

Golden Star owns 90% of the Wassa gold mine in southwest Ghana, with the remainder owned by the Ghanaian government. The mine produced 168 000 oz, or 4.76 t, of gold in 2020, Golden Star's website shows.

The 30-year Wassa mining lease expires in September 2022 but Chifeng said the government had confirmed it will approve an extension if an application for one is made.

In its own statement, Golden Star cited CEO Andrew Wray as saying the deal would provide a larger capital base to help to deliver growth at Wassa.

The company also said the agreed price represented a 24.1% premium over its closing share price on the New York Stock Exchange on Friday.

"We intend to invest significant financial and human capital into Wassa to realise the mine's full potential," Chifeng President Lu Xiaozhao was quoted as saying in the statement.

Outside China, Chifeng already operates the Sepon gold and copper mine in Laos and in September agreed to invest A$2-million ($1.5-million) in Australia's Metalstech.

The Golden Star transaction is expected to close in January 2022, both companies said.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.061 0.497s - 140pq - 2rq
Subscribe Now