Macquarie Bank Limited has provided a $60 million senior credit facility to Toronto-based Golden Star Resources, a gold mining company that owns and operates the Wassa and Prestea underground mines in Ghana, West Africa. The capital infusion will be used to refinance loans and for general corporate purposes. Golden Star is listed on the New York Stock Exchange, the Toronto Stock Exchange and the Ghana Stock Exchange.
TORONTO, Oct. 17, 2019 /PRNewswire/ – Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) (“Golden Star” or the “Company”) is pleased to report that it has closed the $60 million senior secured credit facility with Macquarie Bank Limited (the “Credit Facility”) previously announced in its July 31, 2019 news release.
Golden Star has used the proceeds to refinance the Ecobank Loan III, Ecobank Loan IV, and the long-term payable under the Vendor Agreement with Volta River Authority. The remaining balance is available for general corporate purposes.
The Credit Facility is repayable $5 million quarterly, commencing on June 30, 2020. The final maturity date is March 31, 2023. The interest rate is 4.5% plus the applicable USD LIBOR rate. The Credit Facility is subject to normal course financial covenants including a Debt Service Coverage Ratio of greater than 1.20:1 and a Net Debt to EBITDA ratio of less than 3.00:1.
All monetary amounts refer to United States dollars.
Golden Star is an established gold mining company that owns and operates the Wassa and Prestea underground mines in Ghana, West Africa. Listed on the NYSE American, the Toronto Stock Exchange and the Ghana Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from its two high-grade underground mines. Gold production guidance for 2019 is 190,000 – 205,000 ounces at a cash operating cost per ounce of $800-$8501. As the winner of the PDAC 2018 Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive and sustainable legacy in its areas of operation.