Chifeng Gold mine takes over Wassa mine
GOLDEN Star Resources, operators of the Wassa mine has entered into an agreement with Chifeng Jilong Gold Mine for the complete acquisition and takeover of Wassa mine, pending approval from both shareholders and government of Ghana.
Per the agreement reached between the two, Chifeng Gold mine has acquired 95% of shares in the mine, amounting to $470 million. The new owners have also agreed to $90 million debt owed by Golden Star Resources.
When both the shareholders and government eventually approve the deal, Chifeng would become the new owners of the Wassa mine and Golden Star would no more be listed on the Ghana, Toronto and New York stock Exchanges.
The Chief Executive Officer (CEO) of Golden Star Resources, Andrew Wray, told news men in Takoradi recently that the company would need 66% of shareholders to approve of the deal including government.
He expressed the hope that the final approval would be given come December 22, 2021 when the shareholders are expected to meet.
According to CEO Andrew Wray, the objective for the sale of the mine it to afford the new owners the opportunity to grow the company by making more capital investments.
On the possible retrenchment of the workers, Mr Andrew Gray said his outfit does not envisage any job losses, however the new owner may work to harmonize what he described as “terms and conditions” including negotiating to pay severance packages to permanent workforce.
“Downsizing is not the objective of the takeover. The objective is to grow the mine and to do that requires investment”, he told news men via zoom conference.
According to him, because GSR would have no role to play when the takeover was completed, it has put in place strong legal framework that cannot be tampered with by the new owner.
For this reason, it would require the regulator – that is government – to enforce the legal framework.
The Chief Operating Officer (COO) of Wassa Mine, Graham Crew, on his part told the news men that the response of the workforce regarding the takeover was overwhelming because they understand the meaning of the takeover.
Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capital of $4.3bilion. It operates five mining, including the world class Sepon Gold mine in Laos. In 2018, Chifeng acquired Sepon before undertaking significant capital expenditures to redevelop the gold processing facility in order to double its future gold production.
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