Golden Star Resources (GSC-T, GSS-X), a gold miner with projects in Ghana, is raising US$75 million in a share offering.
The company will issue 20,000 shares at US$3.75 apiece. Another 3 million shares may be issued at US$3.75 for additional proceeds of US$11.25 million to cover over-allotments.
A syndicate of underwriters, led by BMO Capital Markets, is participating in the financing.
Golden Star says the proceeds will be used for its capital projects, exploration activities and general corporate purposes.
The company produced 296,000 oz. gold in 2008 from its two mines, the Bogoso/Prestea and Wassa open-pit mines, and expects to increase that to 405,000 oz. gold for 2009.
Golden Star is working on improving throughput and rates and reducing costs at its Bogoso sulphide processing plant.
It’s also moving forward with per- mitting and development of the Prestea South deposits, which will provide more oxide ore for the Bogoso oxide plant.
And the company will continue exploration at Bogoso/Prestea, Wassay and its other exploration targets.
On the news, Golden Star shares closed down 12% or 55¢ at $3.90 per share on a trading volume of 3.9 million shares. The stock has traded in a 12-month window of 50¢-$4.59.
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