DENVER, CO, May 31, 2012 (MARKETWIRE via COMTEX) --Golden Star Resources Ltd. (NYSE Amex: GSS) (NYSE MKT: GSS) (TSX:
GSC) (GHANA: GSR) ("Golden Star" or the "Company") today announced
that, further to its May 17, 2012, news release, it has completed the
sale of $77,490,000 in principal amount of 5.00% Convertible Senior
Unsecured Debentures due June 1, 2017 (the "New Debentures"). All
references to "$" in this press release are to United States dollars.
Pursuant to the purchase and exchange agreements entered into on May
17, 2012, Golden Star has today purchased an aggregate of $74,510,000
of the principal outstanding under its 4.00% Convertible Senior
Unsecured Debentures due November 30, 2012 (the "Original
Debentures"), by way of privately negotiated transactions with
certain holders of Original Debentures. After purchasing and
cancelling $74,510,000 of Original Debentures, an aggregate of
approximately $50.5 million principal amount of Original Debentures
remains outstanding. The Company's current financial plan is to repay
the $50.5 million outstanding under the Original Debentures in cash.
Tom Mair, President and CEO, commented, "We are very pleased to
complete this financing. This will give us the flexibility to
continue the development of Golden Star's pipeline projects,
including the Dumasi pit and the Prestea Underground mine, both very
important projects for the Company."
BMO Capital Markets acted as the exclusive financial advisor to
Golden Star in connection with the purchase of the Original
Debentures and sale of the New Debentures.
COMPANY PROFILE
Golden Star Resources holds the largest land package
in one of the world's largest and most prolific gold producing
regions. The Company holds a 90% equity interest in Golden Star
(Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which
respectively own the Bogoso/Prestea and Wassa/HBB open-pit gold mines
in Ghana, West Africa. In addition, Golden Star has an 81% interest
in the currently inactive Prestea Underground mine in Ghana, as well
as gold exploration interests elsewhere in Ghana, in other parts of
West Africa and in Brazil in South America. Golden Star has
approximately 259 million shares outstanding. Additional information
is available at www.gsr.com.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other applicable securities laws. Investors are cautioned that
forward-looking statements are inherently uncertain and involve risks
and uncertainties that could cause actual results to differ
materially. Such statements include comments regarding the financial
strength and flexibility of the Company as a result of the issuance
of the New Debentures, the development of its pipeline projects, and
the Company's plan to repay the outstanding balance of Original
Debentures in cash. Factors that could cause actual results to differ
materially include timing of and unexpected events at the
Bogoso/Prestea oxide and sulfide processing plants and at the Wassa
processing plant; variations in ore grade, tonnes mined, crushed or
milled; variations in relative amounts of refractory, non-refractory
and transition ores; delay or failure to receive board or government
approvals and permits; the availability and cost of electrical power;
timing and availability of external financing on acceptable terms;
technical, permitting, mining or processing issues; changes in U.S.
and Canadian securities markets; and fluctuations in gold price and
costs and general economic conditions. There can be no assurance that
future developments affecting the Company will be those anticipated
by management. Please refer to the discussion of these and other
factors in our Form 10-K for 2011. The forecasts contained in this
press release constitute management's current estimates, as of the
date of this press release, with respect to the matters covered
thereby. We expect that these estimates will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts. While we may elect to update
these estimates at any time, we do not undertake to update any
estimate at any particular time or in response to any particular
event. Investors and others should not assume that any forecasts in
this press release represent management's estimate as of any date
other than the date of this press release.
For further information, please contact:
GOLDEN STAR RESOURCES LTD.
Bruce Higson-Smith
Senior Vice President Finance and Corporate Development
1-800-553-8436
INVESTOR RELATIONS
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
SOURCE: Golden Star Resources