Golden Star Commences Offer To Shareholders To Acquire IAMGold
13:09 EDT Thursday, June 10, 2004
DENVER, COLORADO--(CCNMatthews - Jun 10, 2004) - Golden Star Resources Ltd. ("Golden Star") (TSX:GSC; AMEX:GSS) today filed its formal offer for all of the common shares of IAMGold Corporation ("IAMGold") (TSX:IMG; AMEX:IAG) with securities regulators in Canada and the United States and is mailing its offering circular and related documents to IAMGold shareholders.
Under the terms of the share exchange offer, which remains open until 9:00 pm on July 16, 2004, IAMGold shareholders will be entitled to receive 1.15 common shares of Golden Star for each IAMGold common share they hold. The offer provides IAMGold shareholders with a 13% premium over the closing price of IAMGold common shares on the Toronto Stock Exchange on May 27, 2004, when Golden Star announced its proposed business combination with IAMGold.
"We are offering IAMGold shareholders immediate excellent value for their investment and the opportunity to participate in the potential of a dynamic pure-gold company," said Peter Bradford, President and Chief Executive Officer of Golden Star. "The combination of our two companies is accretive to shareholders of both IAMGold and Golden Star and will create an intermediate gold producer with a portfolio of profitable gold mining operations, development projects and exploration properties focused in West Africa - one of the world's most promising areas for future gold discoveries and the development of large, low-cost mining operations."
Mr. Bradford added: "We believe that our offer is clearly superior, both financially and strategically, to the proposed arrangement between IAMGold and Wheaton River Minerals Limited that shareholders are being asked to consider at the IAMGold shareholders meeting scheduled for June 29, 2004."
On June 8, 2004, the Ontario Superior Court of Justice ordered the IAMGold annual and special meeting, scheduled for that day, to be postponed to allow shareholders the opportunity to receive and consider the Golden Star offer.
Golden Star believes that, on successful completion of its offer, the combined business of Golden Star and IAMGold would be a new, essentially unhedged intermediate gold producer focused on West Africa and providing shareholders with:
- Increased gold production: approximately 800,000 ounces in 2005, generating more than US$100 million in net free cash flow from 2006 (after capital and exploration expenditures) and with further growth potential based on having the largest reserve and resource base among intermediate gold producers;