Golden Star Resources (ASE) says a preliminary prospectus has been filed for a public offering and private placement to raise $10 million for exploration at gold and diamond projects in Guyana.
Under the public offering, Golden Star is planning to issue units consisting of one common share, one-half of a Series A Warrant and one-half of a series B warrant.
The company is also proposing to issue 1,159,000 units of Golden Star without additional payment upon exercise of 1,159,000 previously issued special warrants sold under a private placement which closed Dec. 28.
Close to 50% of the proceeds are earmarked for the Calgary company’s 100% owned Mahdia placer gold project 200 km southwest of Georgetown. Golden Star’s stake in the project is subject to an 8.5% interest held by the government of Guyana.
Having outlined reserves standing at 8.5 million cubic metres, grading 0.52 grams per cubic metre, Golden Star is planning to start plant construction within six months.
At full speed, the project could produce 1.87 tonnes (60,000 oz.) of the yellow metal annually. Golden Star is also hoping to explore the Mazaruni diam ond and gold areas in central Guyana.
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