GOLDEN Star Resources said a 5:1 share consolidation which was approved at a special meeting of shareholders on September 17 would see the firm’s share count reduced from about 544 million shares to 108.8 million shares.
“The company believes that a reduction in the number of outstanding common shares will increase Golden Star’s flexibility and competitiveness in the marketplace and may make its shares more attractive to potential investors,” it said in a statement.
Shares in the company would continue to trade on the Toronto Stock Exchange, the NYSE American and the Ghana Stock Exchange.
The firm said on October that La Mancha, an investment vehicle owned by Egyptian entrepreneur, Naguib Sawiris, had completed a $125.7m cash investment buying a 30% stake in the firm and two board seats.
“It will allow us to expedite our exploration and expansion programs at both our Wassa Underground and Prestea Underground Gold Mines as well as providing us with a funding position to participate in the consolidation of the African gold mining sector,” said Sam Coetzer, president and CEO of the company. “It is transformative for our balance sheet.”
