Chifeng Gold to complete acquisition of Golden Star Resources by end of month

Chinese gold mining firm ChifengJilong Gold Mining Limited, is expected to complete its acquisition of Golden Star Resources (GSR) by the end of January this year.

This follows the obtainment of the Final Order for Plan of Arrangement by GSR from the Ontario Superior Court of Justice.

The Final Order for Plan of Arrangement is an order approving the acquisition of GSR (a Canadian company) by Chifeng Gold Limited.

The acquisition, it however noted, is still subject to receipt of all regulatory and stock exchange approvals from China and Ghana.

“Golden Star Resources is pleased to announce that it has obtained a final order from the Ontario Superior Court of Justice approving the Company’s previously announced plan of arrangement under Section 192 of the Canada Business Corporations Act, involving the Company, ChifengJilong Gold Mining Ltd. pursuant to the arrangement agreement dated October 31, 2021, as amended by an amending agreement dated November 24, 2021,” stated GSR in a statement published on its website said.

“The arrangement is expected to be completed later in January 2022, subject to, among other things, receipt of all regulatory and stock exchange approvals, including in the People’s Republic of China and in Ghana, and the satisfaction or waiver of conditions precedent as set forth in the Arrangement Agreement,” it added.

Pursuant to the Arrangement Agreement, Chifeng, through Chijin and the Assignee have agreed to acquire all of the issued and outstanding Golden Star Shares.

Shareholders are expected to receive total consideration, payable in cash, of US$3.91 (equivalent to approximately C$4.85 as of October 31, 2021) per Golden Star Share, which equates to a total Transaction value of approximately US$470 million on a fully-diluted, in-the-money basis.

Golden Star has engaged Canaccord Genuity Corp. as its exclusive financial advisor as well as Fasken Martineau DuMoulin LLP and Davis Graham & Stubbs LLP as its respective Canadian and United States legal advisors.

Canaccord Genuity Corp. provided a fairness opinion to Golden Star’s Board of Directors. Chifeng has engaged StifelNicolaus Canada Inc. and First Asia Group Ltd. as its financial advisors as well as Goodmans LLP as its legal advisor.

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