The plan by Chinese gold firm, Chifeng Jilong Gold, to acquire majority stake in Ghanaian focused gold mining company, Golden Star Resources (GSR) is one of the leading stories in the Ghanaian press on Tuesday.The Ghanaian Times reports that the Chinese gold firm, Chifeng Jilong Gold, has agreed to acquire majority stake in Ghanaian focused gold mining company Golden Star Resources (GSR).
The acquisition by Chifeng Jilong Gold, according to a statement issued by Golden Star Resources in Accra yesterday, involved an all-cash offer of $470 million for GSR.
“Golden Star Resources and Chifeng Jilong Gold Mining are pleased to announce that they have entered into a definitive agreement pursuant to which Chifeng has agreed to acquire all of the issued and outstanding common shares of Golden Star by way of a statutory plan of arrangement under the Canada Business Corporations Act,” the statement said.
According to the statement, shareholders of GSR pursuant to the transaction would receive total consideration, payable in cash of $3.91 per Golden Star Share which equates to approximately $470 million on a fully-diluted, in-the-money basis.
“The consideration represents a 24.1 per cent premium over the closing price of the Golden Star Shares on the New York Stock Exchange (NYSE) as at October 29, 2021, a 37.2 per cent premium based on the volume-weighted average price of the Golden Star Shares on the NYSE over the 20 trading days ending October 29, 2021 and a 51.5 per cent premium based on the volume-weighted average price of the Golden Star Shares on the NYSE over the 60 trading days ending October 29, 2021,” the statement.
The sale of GSR to Chifeng Jilong Gold, the statement said, had been unanimously approved by the Board of Directors of Golden Star adding that it was important that Golden Star shareholders unanimously vote in favour of the acquisition of the company.
The newspaper says that the government’s effort at retooling the Ghana Armed Forces (GAF) will greatly enhance its operational and logistical capabilities, the chief of Defence Staff (CDS), Vice Admiral Seth Amoama, has said.
According to him, aside the normal budgetary allocation, government had also made available $250 million for the purchase of modern armoured vehicles and troops carrying vehicles to adequately prepare GAF to protect the territorial integrity of the country.
The CDS made this remark at this year’s Land Combat Fire Power Demonstration at Bundase in the Greater Accra Region on Friday.
The annual exercise which […]