TORONTO, July 26, 2016 /CNW/ - Golden Star Resources Ltd.
(NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the
"Company") announces the pricing of US$30.0
million, or 40,000,000, of its common shares in an
underwritten public offering, at a price of US$0.75 per share (the "Equity Offering"). The
Company has granted the underwriters of the Equity Offering a
30-day option to purchase up to US$4.5
million, or 6,000,000 common shares, to cover
over-allotments, if any, and for market stabilization
purposes. The Equity Offering is expected to close on
August 3, 2016, subject to customary
closing conditions.
The Company intends to use the net proceeds from the Equity
Offering of approximately US$28.0
million, together with the net cash proceeds from a
concurrent private offering of convertible senior notes (the
"Notes") of approximately US$22.7
million, to strengthen its balance sheet by retiring certain
of its outstanding indebtedness, including through the repurchase
of its 5.0% convertible senior unsecured debentures due
June 1, 2017 in privately negotiated
transactions, repayment of its secured medium term loan facility
with Ecobank Ghana Limited and any remaining funds for general
corporate purposes.
The offering of common shares is being made through an
underwriting group led by BMO Capital Markets as sole book-running
manager.
The Notes are only being offered in the United States to qualified institutional
buyers in accordance with Rule 144A under the U.S. Securities Act
of 1933, as amended (the "U.S. Securities Act") and to non-U.S.
persons outside the United States
in reliance on Regulation S under the U.S. Securities Act. The
Notes are only being offered in Canada to accredited investors pursuant to
exemptions from the prospectus requirements of applicable Canadian
securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall it
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale is unlawful. The Notes and
the common shares issuable upon the conversion of the Notes have
not been and will not be registered under the U.S. Securities Act
and may not be offered or sold absent registration or an applicable
exemption from the registration requirements of the U.S. Securities
Act and in Canada will be subject
to a four month restricted period from the issue date of the
Notes.
The Company has applied to list the common shares to be issued
pursuant to the Equity Offering and the common shares issuable upon
conversion of the Notes on the Toronto Stock Exchange ("TSX") and
the NYSE MKT. For the purposes of TSX approval, the Company
intends to rely on the exemption set forth in Section 602.1 of the
TSX Company Manual, which provides that the TSX will not apply its
standards to certain transactions involving eligible interlisted
issuers.
The Company has filed a registration statement (including a
preliminary prospectus) with the Securities and Exchange Commission
(the "SEC"), and a preliminary prospectus supplement to its MJDS
shelf prospectus with Canadian securities regulatory authorities in
each of the provinces of Canada,
other than Québec, for the Equity Offering to which this
communication relates. Before you invest, you should read the
preliminary prospectus supplement and the accompanying base shelf
prospectus and the other documents that the Company has filed with
the SEC and applicable Canadian securities regulatory authorities
for more complete information about the Company and the Equity
Offering. You may get these documents for free by visiting EDGAR on
the SEC website at www.sec.gov and SEDAR at www.sedar.com.
Alternatively, the Company, any underwriter or any dealer
participating in the Equity Offering will arrange to send you the
prospectus supplement if you request it from BMO Capital Markets,
Attn: Equity Syndicate Department, 3 Times Square, New York, NY 10036, by telephone at (800)
414-3627 or by email at bmoprospectus@bmo.com
Cautionary Note Regarding Forward-Looking Information
This press release 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 completion of
the Equity Offering; the anticipated pricing and completion of the
Notes offering; the completion of the exchange; the planned use of
proceeds for the Equity Offering; the planned use of proceeds from
the Notes offering; and the planned reliance on the exemption set
forth in Section 602.1 of the TSX Company Manual.
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 press release
except in accordance with applicable securities laws.
SOURCE Golden Star Resources Ltd.