Golden Star closes shop in $470m sale to Chinese firm

BY: Maxwell Akalaare Adombila

A Chinese company has bought the Ghana operations of Golden Star Resources Limited, ending its business interest and activities in the country.

The Chinese gold mine, Chifeng Jilong Gold Mining, bought Golden Star for $470 million, bringing to an end a global operation that was hugely focused on gold mining in Wassa and Bogoso-Prestea, both in the Western Region.

The company had earlier sold the Bogoso-Prestea Underground Mine to Future Global Resources Limited (FGR) in a deal that later generated controversy on financial grounds and commitment to agreed terms.

The latest sale to Chifeng Gold will, therefore, affect only the Wassa Mine, where Golden Star was hopeful to produce 145,000 ounces to 155, 000 ounces of gold this year.

It is now the second and only successful attempt by Chifeng Gold to enter Ghana. An earlier deal to acquire the Bibiani Mine from Resolute Resources was abrogated and both parties walked off.

Golden Star produced 78,000 ounces of gold in the Wassa Mine in the first six months of the year.

The company owned 90 per cent of the mine whose lease is due to expire in 2022. It is understood that the success of the deal was based on the government's agreement to approve an extension of the lease for the new owners.