Golden Star boosts interest in Bogoso

Denver — Golden Star Resources (GSC-T) has agreed to acquire its partner’s stake in the Bogoso gold mine in Ghana in exchange for 3 million shares of the company.

Australia’s Anvil Mining will transfer its 20% interest in the mine in exchange for a 7.9% stake in Golden Star.

As a result, Golden Star’s interest in Bogoso, an open-pit mine on the Ashanti trend, will climb to 90%, with the government of Ghana holding the remaining 10%. Golden Star and Anvil acquired control of the mine in late 1999.

The agreement calls for Golden Star to assume all Anvil’s future financial obligations and liabilities relating to Bogoso. The transaction is subject to the approval of the government, the Toronto Stock Exchange and Golden Star shareholders, who will vote on the deal at a meeting in late June. Once the agreement is completed, the company will have 41 million shares outstanding.

Golden Star President Peter Bradford says the transaction will give the mine better access to capital and help the company pursue its strategy of regional consolidation. In 2000, the government of Ghana stymied Golden Star’s acquisition of the nearby Prestea gold mine. The company still hopes to complete the transaction.

Golden Star also expects to complete a final feasibility study on the sulphide mineralization at Bogoso. Based on 24,000 metres of drilling, the company outlined a measured and indicated resource of 23.5 million tonnes averaging 2.2 grams per tonne, including a high-grade core of 5.6 million tonnes of 4.3 grams per tonne.

Recently, Golden Star and partner Rio Tinto (RTP-N) resumed drilling at their Paul Isnard gold project in French Guiana.

The transaction allows Anvil to focus on developing the Dikulushi copper-silver project in the Democratic Republic of Congo. The deposit contains a resource of 1.9 million tonnes grading 8.6% copper and 266 grams silver per tonne, based on a 1998 prefeasibility study.