Golden Star plans amendment, redemption of all 6.85% convertibles

By Jennifer Chiou

New York, Oct. 23 - Golden Star Resources Ltd. announced that it has entered into amendment agreements with the holders of its $50 million of 6.85% senior convertible notes due April 15, 2009 to require the early redemption of all of the notes.

The company will pay $61.76 million in cash, including accrued interest, for the redemption.

Golden Star noted that the redemption obligation is conditional on the completion of the sale of securities with proceeds sufficient to redeem all of the notes.

The amendments will become effective upon the announcement of definitive terms of Golden Star's proposed offering of up to $125 million of convertible senior unsecured debentures.

Golden Star is a Denver-based owner of a 90% equity interest in both the Bogoso/Prestea and Wassa open-pit gold mines in Ghana, owner of a majority interest in the currently inactive Prestea Underground mine in Ghana and owner of gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America.

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