TORONTO, May 9, 2016 /CNW/ - Golden Star Resources Ltd.
(NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") has announced today that it has completed its previously
announced "bought deal" prospectus offering (the "Offering"), by
issuing 22,750,000 common shares (the "Common Shares") at a price
of US$0.66 per Common Share for gross
proceeds of approximately US$15
million. The Offering was led by BMO Capital Markets. The
Company has granted BMO Capital Markets an option, exercisable at
the offering price for a period of 30 days following the closing of
the Offering, to purchase up to an additional 3,412,500 Common
Shares at a price of US$0.66 per
Common Share to cover over-allotments, if any.
The net proceeds of the Offering will be used for debt reduction
as well as for working capital and general corporate purposes.
The Common Shares described above were offered by the Company
pursuant to the Company's effective shelf registration statement
(including the existing base shelf prospectus) filed with the U.S.
Securities and Exchange Commission ("SEC"). A final prospectus
supplement relating to the offering was filed with the SEC on
May 2, 2016. You may get these
documents for free by visiting EDGAR on the SEC Web site at
www.sec.gov. Alternatively, the Company, any underwriter or any
dealer participating in the Offering will arrange to send you the
prospectus or you may request it, in Canada from BMO Capital Markets, Brampton
Distribution Centre C/O The Data Group of Companies, 9195 Torbram
Road, Brampton, Ontario, L6S 6H2
by telephone at 905-791-3151 Ext 4020 or by email at
torbramwarehouse@datagroup.ca and in the United States from BMO Capital Markets
Corp. at 3 Times Square, 27th Floor, New
York, NY 10036 (Attn. Equity Syndicate), or toll-free at
800-414-3627 or by email at bmoprospectus@bmo.com.
Company Profile
Golden Star is an established
gold mining company that owns and operates the Wassa and Prestea
mines situated on the prolific Ashanti Gold
Belt in western Ghana,
Africa. Listed on the NYSE MKT,
the TSX, and the GSE, Golden Star is
strategically focused on increasing operating margins and cash flow
through the development of two high grade, low cost underground
mines both in conjunction with existing open pit operations. The
Wassa Underground is expected to commence production in mid-2016
with the Prestea Underground commencing production in mid-2017.
Both projects are fully funded and on track to begin production as
expected. Production in 2016 is expected to be between 180,000 –
205,000 ounces of gold with costs of $815 -
$925 per ounce.
Statements Regarding Forward-Looking Information
This report contains "forward looking information" within the
meaning of applicable Canadian securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995, concerning the business,
operations and financial performance and condition of Golden Star. Generally, forward-looking
information and statements 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 information
and statements include, but are not limited to, the planned use of
proceeds for the Offering; gold production forecast for 2016; 2016
cash operating costs; the Company's strategy of increasing its
operating margins and cash flows; and the timing for first
production from Wassa underground and Prestea Underground.
Forward-looking information and statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Golden Star to be materially
different from future results, performances or achievements
expressed or implied by such statements. Forward-looking
information and statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, performance or achievements of Golden Star to be materially different from
those expressed or implied by such forward-looking information and
statements, including but not limited to: 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; risks related to joint venture
operations; 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. Please refer to the discussion of these
and other factors in our Annual Information Form for the year ended
December 31, 2015. Although
Golden Star has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information and statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are made as of the date hereof and accordingly are
subject to change after such date. Golden
Star does not undertake to update any forward-looking
information and statements that are included in this news release
except in accordance with applicable securities laws.
SOURCE Golden Star Resources Ltd.