Mid-tier gold-miner Golden Star ordain sell its 90% stake in theGoulagou and Rounga properties in Burkina Faso to RiverstoneResources a Canadian gold and uranium explorer. The affiliate explained that Riverstone would spend C$4-million onexploration programmes on the properties over the next four years,before it would buy the properties for $18,6-million in cash or incommon shares. Golden go away would also receive up to two-million shares ofRiverstone over the term of the option and would receivetwo-million common share acquire warrants of Riverstone atexercise prices of C$0,30 to C$0,45. Golden Star would retain a production-related net smelter returnroyalty of up to 2%. In 2005. Golden Star acquired the 90% lay on the line in Goulagou and Roungathrough the merger with St. Jude Resources. A local partner owned a 10% participating interest. President and CEO of Golden Star. Peter Bradford,said that partnering with Riverstone would allow for exploration onthe projects to develop. The transaction follows on the recent agreement with AMI Resources whereby AMI acquired a alter to Golden Star’s 54% arouse in theObuom property in Ghana in transfer for 2,85 million shares ofAMI a 2% NSR royalty and an option to participate in all futurefinancings of AMI.“While we continue to believe that Obuom. Goulagou and Rounga areproperties of merit this rationalisation of our explorationportfolio is intended to allow Golden feature to cerebrate its explorationexpenditures and management on projects that will undergo a moreimmediate impact on Golden feature,” Bradford said.
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