Golden Star closes $60m credit facility

Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR), an established gold mining company that owns and operates the Wassa and Prestea underground mines in Ghana, West Africa, has announced that it has closed the $60 million senior secured credit facility with Macquarie Bank Limited previously announced in its 31 July 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 miner said in a press statement.

The Credit Facility is repayable $5 million quarterly, commencing on 30 June 2020.

The final maturity date is 31 March 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.

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.

Its gold production guidance for 2019 is 190,000 – 205,000 ounces at a cash operating cost per ounce of $800-$850.

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.