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October 3, 2018

La Mancha concludes $125.7m investment in Golden Star Resources

Private gold investment company La Mancha Holding has completed the previously announced $125.7m strategic investment in Canadian gold mining firm Golden Star Resources through a private placement.

Private gold investment company La Mancha Holding has completed the previously announced $125.7m strategic investment in Canadian gold mining firm Golden Star Resources through a private placement.

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In return for the investment, Golden Star issued 163,210,500 common shares, which represent around 30% of its outstanding share capital, to La Mancha.

The proceeds from the placement are expected to enable the company to tap growth opportunities in Africa and also bolster its balance sheet.

Golden Star Resources president and CEO Sam Coetzer said: “This strategic investment from La Mancha secures Golden Star’s platform for growth as a leading African gold producer.

“It will allow us to expedite our exploration and expansion programmes at both our Wassa Underground and Prestea Underground Gold Mines as well as providing us with a funding position to participate in the consolidation of the African gold mining sector.

“It is transformative for our balance sheet, providing both strength and flexibility as we move forwards, and it verifies the strong potential of our assets and the calibre of our management team.”

“It is transformative for our balance sheet, providing both strength and flexibility as we move forwards.”

Pursuant to the terms of the transaction, two new directors nominated by La Mancha have joined Golden Star’s board.

Following the investment, La Mancha is now the largest shareholder in Golden Star.

Golden Star owns and operates two high grade, low cost underground mines, namely Wassa and Prestea in Ghana, West Africa.

The company’s gold production guidance for this year stands at 225,000-235,000oz at a cash operating cost per ounce of $790-830.

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Free Report
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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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