Mining fir, Golden Star Resources has announced receipt of regulatory approval by Ghana’s Ministry of Lands and Natural Resources for its acquisition by Chinese firm, Chifeng Jilong Gold Mining Company.

The Ministry of Lands and Natural Resources raised no objection to Chifeng becoming the controller of Golden Star (Wassa) Limited via Chifeng’s subsidiary, Chijin International (Hong Kong) Limited and/or its assignee.

In a statement, Golden Star Reources said the no objection letter was issued in accordance with section 52 of the Minerals and Mining Act, 2006, (Act 703) and on the advice and recommendation of the Minerals Commission. The Ministry’s approval of the transaction is however subject to customary conditions.

Golden Star, Chifeng and the purchaser entered into a definitive agreement dated October 31, 2021 (the “Arrangement Agreement”) pursuant to which Chifeng, through the Purchaser and/or its assignee, has agreed to acquire all of the issued and outstanding common shares of Golden Star by way of a statutory plan of arrangement.

This is under the Canada Business Corporations Act.

Pursuant to and upon completion of the transaction, holders of Golden Star Shares will receive total consideration, payable in cash, of $3.91 per Golden Star share, which equates to a total transaction value of approximately $470 million on a fully diluted, in-the-money basis.

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana, West Africa.

Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalization of approximately US$4.4 billion. It operates five mining assets, including the world-class Sepon gold mine in Laos.