Private gold investment company La Mancha Holding, which is chaired by Naguib Sawiris, will acquire a 30% stake in TSX-listed Golden Star Resources for $125.7-million.
Golden Star owns the Wassa and Prestea underground mines, in Ghana.
The operations are expected to produce between 230 000 oz and 255 000 oz of gold this year at an all-in sustaining cost of $850/oz to $950/oz.
Golden Star is expected to use the transaction proceeds to fast-track exploration and resource delineation drilling and accelerate underground development at Wassa and Prestea, as well as at the satellite Father Brown development project.
“As the new reference shareholder in Golden Star, our intention is to build on the record of value creation in the mining sector by helping to unlock their organic growth and supporting the expansion of the company, which we believe will create significant value for all shareholders.
“As a result, we will be strongly positioned to capture African growth opportunities through this new investment together with our core investment in Endeavour Mining, with its focus on delivering its strong internal growth pipeline,” Sawiris commented.