Golden Star Resources Ltd. (NYSE American: GSS; TSX: GSC; GSE: GSR) has announced that it has received approval from the board to commence a normal course issuer bid (NCIB) to purchase up to an aggregate of 5,440,950 common shares, representing approximately 5% of the issued and outstanding shares as of 15 March 2019.
Pursuant to the NCIB, the company may, if considered advisable, purchase the shares through the facilities of the NYSE American from time to time over the next 12 months.
Such purchases may commence on 25 March 2019 and will conclude on the earlier of the date on which purchases under the bid have been completed or 24 March 2020.
All shares will be purchased for cancellation. The price which the company will pay for any such shares will be the prevailing market price at the time of acquisition.
The Board of Directors believes that the purchase of its shares would be an appropriate use of corporate funds, in the best interests of the company and its shareholders, when the underlying value of the company is not reflected in the market price of its shares, subject to other capital allocation priorities.
Furthermore, the purchases would be expected to benefit all persons who continue to hold shares by increasing the underlying value of their equity interest in the company if the repurchased shares are cancelled.
Golden Star is an established gold-mining company that owns and operates the Wassa and Prestea underground mines in Ghana, West Africa. Listed on the NYSE American, the Toronto Stock Exchange and the Ghana Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from its two high-grade, low-cost underground mines. Gold production guidance for 2019 is 220,000-240,000 ounces at a cash operating cost per ounce of $620-$680. As the winner of the PDAC 2018 Environmental and Social Responsibility Award, Golden Star is committed to leaving a positive and sustainable legacy in its areas of operation.