Golden Star Resources (GSC-T, GSS-X), a gold miner with projects in Ghana, is raising US$75 million in a share offering.
The company will issue 20,000 shares at US$3.75 apiece. Another 3 million shares may be issued at US$3.75 for additional proceeds of US$11.25 million to cover over-allotments.
The offering is being led by a syndicate of underwriters led by BMO Capital Markets.
Golden Star says the proceeds will be used for its capital projects, exploration activities and general corporate purposes.
The company produced 296,000 oz. gold in 2008 from its two mines, the Bogoso/Prestea and Wassa open pit gold mines, and expects to increase that to 405,000 oz. gold for 2009.
Golden Star is working on improving throughput and rates and reducing costs at its Bogoso sulfide processing plant.
It’s also moving forward with permitting and development of the Prestea South deposits, which will provide more oxide ore for the Bogoso oxide plant.
And the company will continue exploration at Bogoso/Prestea, Wassay and its other exploration targets.
Golden Star shares were down 13% by mid-day today in Toronto, or 60¢, to $3.85 per share on a trading volume of 3.9 million shares.
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