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10% discount on Golden Star share sale

Golden Star shares were marked down 14% on NYSE Amex and 15% on TSX on news of a share offering at a discounted price - but perhaps the big gold price drop contributed to the fall too!

Posted: Friday , 04 Dec 2009

(Reuters) - 

Golden Star Resources Ltd (GSS.A: Quote) (GSC.TO: Quote), a gold miner and explorer, said it has priced its $75 million common stock offering at a discount, sending its shares down as much as 14 percent on the NYSE Amex and 15 percent on the Toronto Stock Exchange.

The company said it would offer 20 million common shares at $3.75 apiece, a discount of 10.5 percent to the stock's Thursday close of $4.19 on the NYSE Amex.

Golden Star granted the underwriters an option to buy up to 3 million additional common shares at the same price for gross proceeds of $11.25 million, to cover over-allotments, if any.

Golden Star, which holds a 90 percent equity interest in the Bogoso/Prestea and Wassa/HBB open-pit gold mines in Ghana, said net proceeds will be used to continue with committed capital projects and exploration activities.

Shares of Golden Star were down 52 cents at $3.67 on NYSE Amex, while they were down 60 Canadian cents at C$3.85 on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Ratul Ray Chaudhuri)