La Mancha enters into strategic partnerhsip with Africa's Golden Star with $127 million investment

By Dale Benton
Anestablished gold mining company with two significant mine operations in Ghana, West Africa, has received a long term strategic investment to propel th...

An established gold mining company with two significant mine operations in Ghana, West Africa, has received a long term strategic investment to propel the company’s growth plans.

Golden Star has announced in a statement this week that it has entered into a long-term, strategic relationship with La Mancha Holding S.à r.l, a Luxembourg-incorporated private gold investment company.

Through the agreement, La Mancha will invest close to $127.7 million cash into Golden Star to support and propel the company’s ambitions of becoming a leading African gold producer.

The investment will be used to accelerate the underground development and production at the company’s Wassa Underground Gold Mine, as well as its Prestea Underground Gold Mine.

It will also fund exploration activities, drilling studies and unlock any potential future acquisitions that the business identifies.

“We share the vision of building a leading, Africa-focused gold producer and this transformative deal clearly endorses the potential of Golden Star's assets, said Sam Coetzer, President and CEO of Golden Star.

Related stories:

Kaz Minerals moves into Russia with $900 million acquisition of Baimskaya project

Anil Andarwal to offer $1 billion to buy full stake in Vedanta Resources

Rio Tinto completes $2.2 billion sale of Kestrel underground coal mine


La Mancha has a strong track record of creating sustainable shareholder value and their previous investments demonstrate their ability to identify compelling growth opportunities at an early stage. 

The transaction also de-risks our balance sheet and lends us a platform to participate actively in the consolidation of the African gold mining industry.  I am very encouraged by the professional approach of the La Mancha team and with our experience of building and operating mines, together we have the expertise and funding to grow across Africa."

La Mancha will be the major shareholder in a rapidly growing gold producer in Ghana, with 2018 forecast annual production of 230,000 – 255,000 ounces from Golden Star’s operating mines.


Featured Articles

SolGold Director resigns after quarterly losses widen

Executive Director Jason Ward has resigned as a Director of SolGold with immediate effect after year-on-year quarterly losses nearly doubled to $9.2mn

BHP extends Spence by 50 years with copper concentrator site

The US$2,460mn copper concentrator plant in Chile has a throughput of 95,000tpd, producing copper concentrate and molybdenum concentrate

Copper Mountain Mining quashes Eva Copper sale speculation

Copper Mountain Mining says it has 'no pending transactions' with respect to the Eva Copper Project amid media speculation that it could be sold

Australian Goldfields to be rebranded Oz Lithium Corporation

Supply Chain & Operations

Horizonte Minerals awards Araguaia earthworks contract

Supply Chain & Operations

Sandvik to buy mining arm of Schenck Process Group

Supply Chain & Operations