Golden Star Resources Ltd. (NYSE Amex: GSS) (TSX: GSC) (GHANA: GSR) (Golden Star or the Company) is pleased to inform its shareholders that Riverstone Resources Inc. (Riverstone) has exercised its option to purchase Golden Star's Goulagou-Rounga properties in Burkina Faso, West Africa.
Tom Mair, President and CEO, said, We are pleased that over the last four years of the option period, Riverstone has achieved considerable success exploring on our property and the surrounding concessions which make up the greater Karma Project. We look forward to participating in further upside through our shareholdings of Riverstone and our royalty on the Goulagou-Rounga concession.
Pursuant to the option agreement between Golden Star and Riverstone dated October 10, 2007, and subsequent addenda, Riverstone has exercised its option to purchase the Goulagou-Rounga property from Golden Star for $18.6 million, payable in cash, Riverstone shares or some combination thereof, at Riverstone's election. In addition, as part of the agreement, Riverstone has issued to Golden Star over the last four years 2,000,000 shares and 2,000,000 share purchase warrants. Golden Star retains a net smelter return royalty, which varies from 0% to 2%, depending on the quantity of gold produced from the property. It is expected that the closing of the option exercise, including full payment of the purchase price, will be made on or before January 27, 2012.
Golden Star Resources holds the largest land package in one of the world's largest and most prolific gold producing provinces. The Company holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, West Africa. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in Brazil in South America. Golden Star has approximately 259 million shares outstanding. Additional information is available at www.gsr.com.
Statements Regarding Forward-Looking Information: Some statements contained in this news release, including those related to the Company participating in upside of Goulagou-Rounga concession due to the Company's shareholdings in Riverstone and the Company's royalty on the concession, and the timing of the closing, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2010. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
For further information, please contact:
GOLDEN STAR RESOURCES LTD.
Vice President Corporate Development
Pfeiffer High Investor Relations, Inc.