Canadian mining company Golden Star Resources announces that Future Global Resources (FGR) has defaulted on its obligation to pay the company's wholly-owned subsidiary, Caystar Holdings, $15-million of the purchase price relating to the sale of Golden Star's 90% interest in the Bogoso-Prestea gold mine.
FGR has claimed that it is entitled to set-off its obligation to make such payment under the share purchase agreement (SPA) as a result of various alleged breaches of the SPA, a claim which Golden Star and Caystar say is without merit.
Caystar has also demanded that FGR's major shareholder, Blue International Holdings (BIH), pay the $15-million pursuant to the guarantee made by BIH in the SPA.
In the event payment is not received from BIH, Golden Star and Caystar are evaluating all available avenues of recourse to seek full recovery of amounts owed by FGR under the SPA.