Golden Star Announces Agreement for Revolving Loan Facility

Golden Star Announces Agreement for Revolving Loan Facility

Golden Star Resources Ltd. announced it has signed an agreement for a revolving credit facility with Standard Chartered Bank. All currency in this news release is expressed in U.S. dollars, unless otherwise noted.

The Facility calls for a fully committed revolving credit line of $30 million, consisting of $15 million of available credit immediately upon signing, and an additional $15 million at the earlier of completion of syndication or 90 days.

The Facility carries a term of three years from signing and bears interest at the higher of LIBOR or the applicable Cost of Funds rate (capped at 1.25 % per annum above LIBOR), plus a Margin of 5% per annum. The Facility is secured by a pledge of shares in Golden Star’s significant subsidiaries and also provides for negative pledges on all other presently unsecured assets. Proceeds of the Facility will be used for working capital and general corporate purposes.

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 through subsidiaries 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 236 million shares outstanding.

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