Golden Star boosts Guyanor

Golden Star Resources (GSR-X) has agreed to accept shares from Guyanor Ressources (GRL.B-T) as repayment of debt.

The transaction increases to 71% Golden Star’s stake in the French exploration company.

As of June 5, Guyanor owed $5.6 million to Golden Star, which has been funding the French company’s exploration and administrative costs through a credit agreement.

Golden Star agreed to acquire 2.4 million Class B common shares, valued at $2.34 per share, as payment of that debt. The board of directors of Guyanor subseqently approved the deal and issued up to 5 million Class B shares.

Guyanor operates the St. Elie, Yaou-Dorlin and Paul Isnard gold properties, as well as the Dachine diamond property, in French Guiana.

If, as is expected, regulators approve the deal, Golden Star will hold 100% of Class A and 37.5% of Class B shares (together totalling 71% of the total shares), and will continue to fund Guyanor until it again has access to financial markets.