News: MTC Chifeng Gold and unnamed partner to buy Golden Star for $470 mln

Nov 1 (Reuters) - China's Chifeng Jilong Gold Mining 600988.SS , also known as Chifeng Gold, on Monday said it and an unnamed co-buyer had agreed to purchase all of Ghana-focused miner Golden Star Resources GSC.TO for a total $470 million in cash.

The agreement marks Chifeng's second attempt to gain a foothold in the West African country after walking away in April from a deal to buy Resolute Mining's (RSG) Bibiani gold mine, saying it had not received timely information about the termination of the mining lease.

Chifeng said on Monday that its Chijin International unit would buy 62% of Golden Star at $3.91 per share, equating to about $291 million. The unnamed third party will contribute a further $179 million and take a 38% stake, it added.

Golden Star owns 90% of the Wassa gold mine in southwest Ghana, with the remainder owned by the Ghanaian government. The mine produced 168,000 ounces, or 4.76 tonnes, of gold in 2020 and has proved and probable reserves of 1.09 million ounces, Golden Star's website shows.

In its own statement, Golden Star cited CEO Andrew Wray as saying the deal would provide a larger capital base to help to deliver growth at Wassa.

The company also said the agreed price represented a 24.1% premium over its closing share price on the New York Stock Exchange GSS.N on Friday.

"We intend to invest significant financial and human capital into Wassa to realise the mine's full potential, and in doing so expand our operating footprint into West Africa," Chifeng President Lu Xiaozhao was quoted as saying in the statement.

Outside China, Chifeng already operates the Sepon gold and copper mine in Laos and in September agreed to invest A$2 million ($1.5 million) in Australia's Metalstech (MTC) .

The Golden Star transaction is expected to close in January 2022, both companies said. ($1 = 1.3307 Australian dollars)