*Mining firm to delist from GSE
*Chinese firm to become primary miner in Ghana
*Golden Star owns 90% of the Wassa Mine in the Western Region
A mining firm with operations in Ghana, Golden Star Resources is set to delist from three stock exchanges in the coming weeks.
According to a statement issued by the firm, the move will take place on the Ghana Stock Exchange, Toronto Stock Exchange and New York Stock Exchange following a successful endorsement of the takeover by Chinese firm, Chigfeng Jilong Gold Mining Company Limited.
Prior to the deal, Golden Star Resources in November 2020 received a stock value offer of US$470 million to be acquired by Chifeng Jilong Gold Mining Limited.
While the delisting from the stock exchanges is yet to take place, the successful endorsement will make Chifeng a primary Chinese mining firm to launch operations in Ghana.
Meanwhile, Golden Star Resources controls 90 percent of the Wassa Mine located in the Western Region.
This is one of the lowest prices paid for ounces in any jurisdiction for a producer, well below the ~$49/oz paid for TMac Resources and the nearly $70/oz paid for Semafo Gold during the COVID-19 Crash, both brilliant acquisitions.
So, while Golden Star is certainly inferior to both companies, the fact that this deal was done at a $1,800/oz gold price for a much lower price per ounce certainly shows that Chifeng paid the right price for this single-asset producer. Golden Star’s inferiority is because TMac Resources had a much higher-grade resource in a safer jurisdiction (Nunavut).
Meanwhile, Semafo shared a similar jurisdictional profile (Burkina Faso), but it had two mines (Mana and Boungou) vs. Golden Star’s one mine, Wassa.
Credit: ghanaweb/Seeking Alpha