Golden Star Resources Ltd. has announced that Future Global Resources Limited ("FGR") has defaulted on its obligation to pay the company's wholly-owned subsidiary, Caystar Holdings ("Caystar"), $15 million of the purchase price relating to the sale of Golden Star's 90% interest in the Bogoso-Prestea Gold Mine to FGR under the share purchase agreement dated July 26, 2020, as supplemented by a letter agreement dated September 30, 2020, and amended by a first amending agreement dated March 28, 2021, and a second amending agreement dated May 31, 2021 (collectively, the "Share Purchase Agreement").
FGR has claimed that it is entitled to set off its obligation to make such payment under the Share Purchase Agreement as a result of various alleged breaches of the Share Purchase Agreement, a claim which Golden Star and Caystar believe to be completely without merit.
Caystar has also demanded that FGR's major shareholder, Blue International Holdings Limited ("BIH"), pay the amount of $15 million pursuant to the guarantee made by BIH in the Share Purchase Agreement.
In the event payment is not received from BIH, Golden Star and Caystar are evaluating all available avenues of recourse in order to seek full recovery of amounts owed by FGR under the Share Purchase Agreement.
Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana.
Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from the Wassa mine.
As the winner of the Prospectors & Developers Association of Canada 2018 Environmental and Social Responsibility Award, Golden Star remains committed to leaving a positive and sustainable legacy in its areas of operation.