Golden Star will use the funds to accelerate development at the Wassa and Prestea underground gold projects in Ghana, to upgrade resources, and for potential future acquisitions.

La Mancha is offering a total of $125.7 million cash through a private placement. Golden Star will then issue approximately 163.2 million common shares, giving La Mancha a 30% interest in Golden Star. The value of La Mancha’s investment equates to a price of $0.77 per share, a 14% premium to the 30-day volume weighted average price at the end of July. La Mancha will nominate three directors to the Golden Star board.