Future Global Resources (FGR) says it has discovered material inaccuracies in information provided by Golden Star Resources (GSR), which it relied upon in deciding to acquire the Bogoso-Prestea mine.  These inaccuracies, it says has had some financial impact on its operations and thus this will be investigated.

FGR notified GSR of the inaccuracies last week and required GSR to indemnify it in respect of the resulting financial losses it has sustained, in accordance with the provisions of the Bogoso-Prestea purchase agreement.

 “Separately, FGR has recently stepped in to settle outstanding and ongoing employee dispute relating to severance payments owed staff of the Bogoso-Prestea mine which resulted in repeated industrial actions.  In the absence of GSR’s participation, FGR negotiated with the staff to reach an agreement on severance packages which resulted in a peaceful return to operations and the cessation of the ongoing legal action,” a press release by Kwabena G. Kugblenu on behalf of Future Global Resources stated.

FGR claims the cost of this settlement from GSR given that GSR has responsibility for this matter is under the purchase agreement.

In light of the above, FGR was not contractually obliged to make the payments that would otherwise be due on July 16, 2021 and will not be making the payment otherwise due on July 31, 2021.

Golden Star Resources Ltd. Announced in Toronto in July 2020 that it had entered into a binding agreement for the sale of its 90% interest in the Bogoso-Prestea Gold Mine in Ghana to Future Global Resources Limited (“FGR”) for a purchase price of $55 million with a further contingent component of up to $40 million.