Prestea acquisition back on track

Denver-based Golden Star Resources Ltd. said it has reached an agreement with Prestea Gold Resources Ltd. , which paves the way for the acquisition of the Prestea surface concession in Ghana.

The agreement is subject to the approval of the Government of Ghana.

Under the agreement Golden Star has now reached with PGR, the mining lease granted to PGR in November 2000 will be surrendered.

Golden Star and PGR will then make application to Government for the granting of two new mining leases, a surface mining lease to a depth of 200 vertical metres in favor of Golden Star and an underground mining lease below a depth of 200 vertical metres in favor of PGR.

The parties also reached broad agreement on the mitigation measures that will be undertaken by Golden Star on the underground mine infrastructure that may be impacted by surface mining at Prestea.