Golden Star Resources Ltd. and Chifeng Jilong Gold Mining Co. Ltd. completed the previously announced plan of arrangement under the Canada Business Corporations Act. Chifeng, through Chijin, acquired all of the issued and outstanding common shares of Golden Star for $3.91 in cash per share, which equated to a total transaction value of approximately $470 million on a fully-diluted, in-the-money basis.
Golden Star owns and operates the Wassa underground mine in the western region of Ghana. Wassa produced 168,000 ounces (oz) of gold in 2020. The mine began as an open-pit operation in 2005 and eventually transitioned to an underground mining operation using sub-level longhole open stoping. Commercial production was achieved at Wassa Underground on January 1, 2017. Ore is processed at a carbon-in-leach plant, which has a processing capacity of 2.7 million metric tons per year (mt/y). It’s currently operating at 70%-80% of its design capacity, as the underground operation does not produce as much ore as the open-pit mine did.
Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalization of approximately $3.7 billion. It operates five mining assets, including the world-class Sepon gold mine in Laos.