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.

Share

Featured Articles

UK Coal Mine Legal Battle puts Sustainability in Spotlight

UK’s first new deep coal mine in 30 years faces legal challenge, putting the world's complicated relationship with this fossil fuel into the spotlight

Rio Tinto Brings Simandou Guinea Iron Ore Saga to End

Rio Tinto ready to resume construction at Simandou mine in Guinea, which be world's largest iron ore operation and Africa's biggest infrastructure project

Focus on: Uranium, the World's Most Powerful Metal

As China builds biggest ever uranium mine, we profile this extraordinary metal, looking at how it is mined, who by & how uranium operations are regulated

Why Nickel Price Slump has hit BHP so Hard

Supply Chain & Operations

Worley: Tech Key for Copper Ramp-up to be Sustainable

Operations

Focus on: Gypsum, a Building Block for World Construction

Operations