Golden Star Resources Limited has announced that Future Global Resources Limited (FGR) has defaulted on its obligation to pay the Company’s wholly-owned subsidiary, Caystar Holdings $15 million of the purchase price.

This relates to the sale of Golden Star’s 90% interest in the Bogoso-Prestea Gold Mine to FGR under the share purchase agreement dated July 26, 2020.

This was supplemented by a letter agreement dated September 30, 2020, and amended by a first amending agreement dated March 28, 2021, and a second amending agreement dated May 31, 2021.

FGR has claimed that it is entitled to set-off its obligation to make such payment under the Share Purchase Agreement as a result of various alleged breaches of the Share Purchase Agreement, a claim which Golden Star and Caystar believe to be completely without merit.

Caystar has also demanded that FGR’s major shareholder, Blue International Holdings Limited (BIH), pays the amount of $15 million pursuant to the guarantee made by BIH in the Share Purchase Agreement.

In the event payment is not received from BIH, Golden Star and Caystar are evaluating all available avenues of recourse in order to seek full recovery of amounts owed by FGR under the Share Purchase Agreement.