Golden Star Resources Ltd. (NYSE American: GSS) (TSX: GSC) (GSE: GSR)  announces the cash repayment of the 7% convertible debentures which matured on August 15, 2021. The Convertible Debentures were, subject to certain limitations, convertible into common shares at a conversion rate of 222.2222 per US$1,000 principal amount of 7% Convertible Debentures at conversion price of approximately US$4.50 per common share. The $51.5 million cash repayment settles the Convertible Debentures in full, thus removing the liability from the balance sheet and the risk of equity dilution. All references herein to “$” are to United States dollars.

The 7% Convertible Debentures were issued in August 2016 for US$65m and prior to maturity US$51.5m were outstanding. Interest on the Convertible Debentures was payable semi-annually on February 1 and August 1 of each year until maturity on August 15, 2021.

Concurrent with the cash repayment of the Convertible Debentures, the Company met the conditions precedent for draw-down of the recently upsized senior secured credit facility with Macquarie Bank Limited (the “Macquarie Credit Facility”). These conditions included a minimum cash balance of $35m post repayment of the Convertible Debentures if the funds drawn from the Macquarie Credit Facility were to be applied to the cash repayment of the Convertible Debentures.  With these conditions met, the Company drew down on the remaining $29.2m of available liquidity. As of the date hereof, the $90m Macquarie Credit Facility is fully drawn.

Andrew Wray, Chief Executive Officer of Golden Star, commented:

“The repayment of the Convertible Debentures is an important step in the strengthening and progression of our balance sheet over the last 18 months. This deleveraging event removes the significantly more expensive facility from our balance sheet and therefore lowers our cost of capital. It is also positive to see the Convertible Debentures repaid in cash, with no equity dilution.

From Q1 2020 to the end of Q2 2021 we successfully halved the Company’s net debt position, while also investing approximately $80m in the business. This has repositioned the balance sheet providing an appropriate funding structure with attractive debt ratios. We therefore look forward to delivering on the future growth of the Wassa mine with a stronger balance sheet and significant investment already completed, at the same time as we are continuing to make good progress on delivering the operational improvements to support a consistent increase in production volumes.”

About Golden Star:

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in the Western Region of Ghana, West Africa.  Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from the Wassa mine.  As the winner of the Prospectors & Developers Association of Canada 2018 Environmental and Social Responsibility Award, Golden Star remains committed to leaving a positive and sustainable legacy in its areas of operation.