What Caused Golden Star Resources (GSS) Stock to Rise Nearly 20%?

Early trading today, shares of Golden Star Resources Ltd. (GSS) gained 19.37% to $3.76. Last trading session, GSS stock gained 2.94% to $3.15. GSS stock traded for 0.98 million shares, which is below the average daily trading volume of 0.45 million shares over the last 50 days.

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GSS shares have appreciated 14.5% in the last five days, but they have gained 32.35% over the last month. Since the beginning of the year, the stock price of GSS has gained 24.02%, while it has lost -15.09 percent. Moreover, the price-to-cash-flow ratio of GSS is 23.04, and its price-to-sales ratio is 1.60. GSS stock is rising today after announcing an acquisition offer.

GSS has entered into what agreement?

Golden Star is a set up gold mining organization that claims and works the Wassa underground mine in the Western Region of Ghana, West Africa. Recorded on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, GSS is centered around conveying solid edges and free income from the Wassa mine. As the champ of the Prospectors and Developers Association of Canada 2018 Environmental and Social Responsibility Award, GSS stays focused on leaving a positive and maintainable heritage in its spaces of activity.

Golden Star and Chifeng Jilong Gold Mining reported that they have gone into a conclusive arrangement according to which Chifeng has consented to gain every one of the issued and outstanding common share of GSS. Chifeng will execute the exchange via a legal arrangement of game plan under the Canada Business Corporations Act. The Transaction will be culminated through Chifeng’s larger part controlled auxiliary, Chijin International (Hong Kong) Limited (the “Buyer”).

Transaction highlights:

  • In accordance with the Transaction, holders of GSS Shares will get total consideration, payable in real money, of US$3.91 per Golden Star Share, which likens to roughly US$470 million on a completely weakened, in-the-cash premise.
  • The Consideration addresses a 24.1% premium over the end cost of the GSS Shares on the NYSE as at October 29, 2021.
  • The consideration is likewise at a higher cost than normal of 37.2% dependent on the volume-weighted normal cost of the GSS Shares on the NYSE over the 20 trading days closing October 29, 2021.
  • The consideration is at a 51.5% premium dependent on the volume-weighted normal cost of the Golden Star Shares on the NYSE American over the 60 exchanging days finishing October 29, 2021.
  • The Board of Directors of GSS has consistently endorsed the Transaction and is collectively suggesting that Golden Star Shareholders vote for the Transaction.
  • The Board of Directors of Golden Star has gotten an oral assessment from its financial advisor, Canaccord Genuity Corp.

How GSS has been going through the agreement?

All chiefs and officials of Golden Star (GSS), just as La Mancha Star Investments, which by and large hold around 33.4% of the GSS Shares, have gone into casting a ballot support concurrences with Chifeng according to which they have consented to, in addition to other things, vote for the investor goal endorsing the Transaction. Dependent upon the different endorsements required, the Transaction is relied upon by GSS to close in January 2022.