Royal Gold acquires gold streams on Wassa, Bogoso and Prestea from Golden Star Resources
May 07, 2015
150.00 Million CAD
On May 7, 2015, Royal Gold Inc. announced that its wholly owned subsidiary RGLD Gold AG has entered into a C$130 million gold stream transaction with a wholly owned subsidiary of Golden Star Resources Ltd. that will finance underground development projects at the Wassa and Prestea mines in Ghana. Separate from the stream transaction, RGI will provide a C$20 million, four-year term loan to Golden Star, and Golden Star Resources Ltd. will issue warrants to purchase 5 million shares of its common stock to RGI.
The Wassa mine is located 150km west of Accra and has operated continuously since 2005. Golden Star Resources Ltd. forecasts calendar 2015 production of 113,000 ounces of gold from the single Wassa open pit. .Bogoso and Prestea are located 200km west of Accra and have produced over 9 million ounces from both open pit and underground sources over the last 100 years.
Royal Gold, Inc. is a precious metals royalty and stream company engaged in the acquisition and management of precious metal royalties, streams, and similar production based interests.
Golden Star Resources Ltd. is an established gold mining company that holds a 90% interest in the Wassa, Prestea and Bogoso gold mines in Ghana.
McCarthy Tétrault LLP advised Royal Gold with a team led by Christopher Langdon.