DENVER, December 5 /CNW/ - Golden Star Resources Ltd. (AMEX: GSS)(TSX:
GSC) ("Golden Star") today announced that it has completed two transactions
with EURO Ressources SA for net proceeds to Golden Star of $8.1 million.
Golden Star has completed two transactions with EURO Ressources SA
("EURO"), which were previously announced on March 27, 2007. The completion of
the sale of the Gross Rosebel Additional Participation Right to EURO for $4.4
million and the payment by EURO of approximately $3.7 million of debt and
interest owed to Golden Star are expected to contribute approximately $8.1
million of cashflow and, of which, $7.4 million will be pre-tax earnings in
the fourth quarter. Golden Star continues to hold approximately 1.4 million
shares of EURO which equates to an interest of approximately 2% of EURO's
outstanding shares. EURO's financial statements, specifically its hedge book,
are not consolidated in the Golden Star financial statements.
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea)
Limited and Golden Star (Wassa) Limited, which respectively own the
Bogoso/Prestea and Wassa open-pit gold mines in Ghana. 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 the Guiana Shield of South America. Golden Star
has approximately 233 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. 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 risk
factors in our Form 10-K for 2006.
For further information:
For further information: Golden Star Resources Ltd. Bruce Higson-Smith,
+1-800-553-8436 Vice President Corporate Development or Anne Hite,
+1-800-553-8436 Investor Relations Manager