Golden Star Resources (GSS) Comments on Recent Market Activity; No Material Info Undisclosed
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Price: $3.90 --0%
Financial Fact:
Property holding costs: 3.09M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Property holding costs: 3.09M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Golden Star Resources Ltd. (NYSE: GSS) is issuing comments on recent market activity concerning the company's common share trading volumes and price. All references to "$" in this press release are to United States dollars.
On May 17, 2012 Golden Star announced that it had entered into certain definitive agreements to purchase an aggregate of $74.5 million of the principal outstanding under its 4.00% Convertible Senior Unsecured Debentures due November 30, 2012, by way of privately negotiated transactions with certain holders of Original Debentures. Closing of the transaction is expected to occur on or about May 31, 2012, subject to receipt of regulatory and other customary closing conditions.
After purchasing and cancelling $74.5 million of Original Debentures, an aggregate of $50.5 million principal amount of Original Debentures will remain outstanding. Subsequent to this announcement there has been an extraordinarily high volume of trading in the Company's common shares and the stock price has fallen approximately 32% since the May 17 announcement. There are no undisclosed material events at the Company that would support the recent deterioration in the stock price.
By issuing the new $77.5 million convertible debenture Golden Star has significantly improved its financial strength and flexibility at a time of considerable gold and financial market weakness and uncertainty. This new debenture reduces the Original Debenture by $74.5 million and leaves a balance of $50.5 million due on November 30, 2012. The Company's current financial plan is to repay the $50.5 million outstanding balance in cash.
We reiterate the Company's production guidance for the second quarter of 2012 at 83,000 ounces to 87,000 ounces of gold. Operationally, progress remains positive with ongoing drilling at Wassa and the feasibility study for the Prestea Underground Project moving forward.
On May 17, 2012 Golden Star announced that it had entered into certain definitive agreements to purchase an aggregate of $74.5 million of the principal outstanding under its 4.00% Convertible Senior Unsecured Debentures due November 30, 2012, by way of privately negotiated transactions with certain holders of Original Debentures. Closing of the transaction is expected to occur on or about May 31, 2012, subject to receipt of regulatory and other customary closing conditions.
After purchasing and cancelling $74.5 million of Original Debentures, an aggregate of $50.5 million principal amount of Original Debentures will remain outstanding. Subsequent to this announcement there has been an extraordinarily high volume of trading in the Company's common shares and the stock price has fallen approximately 32% since the May 17 announcement. There are no undisclosed material events at the Company that would support the recent deterioration in the stock price.
By issuing the new $77.5 million convertible debenture Golden Star has significantly improved its financial strength and flexibility at a time of considerable gold and financial market weakness and uncertainty. This new debenture reduces the Original Debenture by $74.5 million and leaves a balance of $50.5 million due on November 30, 2012. The Company's current financial plan is to repay the $50.5 million outstanding balance in cash.
We reiterate the Company's production guidance for the second quarter of 2012 at 83,000 ounces to 87,000 ounces of gold. Operationally, progress remains positive with ongoing drilling at Wassa and the feasibility study for the Prestea Underground Project moving forward.
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