DENVER, July 17, 2002 (PRIMEZONE) -- Golden Star Resources Ltd. ("Golden Star" or the "Company") (TSE:GSC) (AMEX:GSS) today announced that its Registration Statement on Form S-3 (the "S-3") was declared effective by the United States Securities and Exchange Commission (the "SEC") and that it filed a final short form prospectus in Canada on July 17, 2002, each relating to the offering by the Company of 14 million units at Cdn$1.90 per unit.
Each unit consists of one common share and one-half of one common share purchase warrant and the securities comprising the units will separate immediately upon issuance. The common shares will be listed on both the American Stock Exchange, or AMEX, under the symbol "GSS" and the Toronto Stock Exchange, or TSE, under the symbol "GSC." Each whole warrant is exercisable during the two years following the closing of the offering to purchase an additional common share and will be listed on the TSE under the symbol "GSC.WT".
The offering is being underwritten in Canada by Canaccord Capital Corporation and BMO Nesbitt Burns Inc., and is being offered on an agency basis in the United States by Canaccord Capital Corporation (USA) Inc. and BMO Nesbitt Burns Corp. The Company has granted the Canadian underwriters an over-allotment option to purchase up to an additional 2,100,000 units. Any units sold on an agency basis in the United States will reduce by an equal amount the underwriting commitment of the Canadian underwriters.
The Company expects that delivery of the units will be made against payment therefore on or about Wednesday, July 24, 2002, or six business days following the effective date of the S-3 (this settlement cycle, "T+6"). Trades in the secondary market are generally required to settle in three business days, or T+3, unless the parties to that trade expressly agree otherwise. Accordingly, purchasers who wish to trade common shares or warrants today or during the next three business days will be required, by virtue of the fact that the units will settle in T+6, to specify an alternative settlement cycle at the time of any such trade to prevent a failed settlement and should consult their own advisor. Purchasers will not be able to trade any common shares or warrants on the TSE or common shares on AMEX until delivery of the units is made (and in the case of the warrants, provided that the warrants have been listed on the TSE), and should therefore consult their own advisor regarding secondary trading during the period prior to closing of the offering.
A copy of the prospectus relating to the offering can be obtained from Canaccord Capital Corporation, telephone: (416) 869-3198, or BMO Nesbitt Burns, telephone: (416) 363-6996, extension 224.
Golden Star has a 90% interest in the Bogoso/Prestea open-pit gold mine in Ghana; a 45% managing interest in the Prestea underground mine in Ghana; and is in the process of acquiring a 90% interest in the Wassa gold project in Ghana. In addition, the Company has other gold exploration interests in the Guiana Shield in South America and in West Africa. Golden Star currently has approximately 67 million shares outstanding and is listed on the Toronto Stock Exchange under the symbol "GSC" and on The American Stock Exchange under the symbol "GSS."
The statements contained in this press release are both historical and forward-looking in nature. The forward-looking statements involve risks and uncertainties, including those relating to exploration, the establishment of reserves, the recovery of any reserves, future gold production, future costs of production, future permitting and future operations. Please refer to a discussion of these and other risk factors in Golden Star's Form 10-K and other Securities and Exchange Commission filings.