Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

The gold pullback I was expecting/hoping for hasn't arrived, and I have only half my WHT in tow. Not complaining, just wondering if I'll ever get an opportunity to pick up some GSS...
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Hi Joe Bob,
Still looking at WHT and GSS?
WHT at 1.71 was .44 off it's recent high
GSS at 3.70 was a buck off it's recent high.
Both representing slightly over 20% pullbacks......
May I ask what kind of a pullback, %wise, are you looking for?
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Joe Bob,
In hindsight, those very prices were the absolute lows on the recent break. I was so tempted to pull the trigger, but...... <VBG>
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Golden Star Completes the Buyback of Wassa Debt and Royalties

Thursday October 9, 3:37 pm ET

DENVER--(BUSINESS WIRE)--Oct. 9, 2003--Golden Star Resources Ltd. (AMEX:GSS - News; TSX:GSC - News) is pleased to announce that it has completed the previously reported transaction to buy back the debt and royalties relating to the Wassa project for $11.5 million. (All currency in this news release is expressed in U.S. dollars.)

Golden Star acquired the Wassa gold project in 2002 from a banking syndicate led by Standard Bank London Limited and entered into certain debt and royalty commitments, which Golden Star has now bought back. The debt, with a balance of $1.9 million, was to be repaid over five years at an interest rate of LIBOR plus 2.5%. The first royalty varied from $7 to $15/ounce, based on gold prices ranging from $280 to $350/ounce, on all future production from the Wassa gold project, while the second royalty was for $8/ounce, with a cap of $5.5 million. In addition, the sellers have released their security over the Wassa assets.

Under the buyback agreement, Golden Star paid the sellers $11.5 million to buy back the debt and the royalties described above. Based on current reserves and gold price levels, the purchase price represents an approximate 20% discount on the face value of the debt repayment (including interest) and royalty costs that Golden Star would have otherwise incurred.

Golden Star has a significant property position in Ghana on the Ashanti gold belt including a 90% equity interest in both the Bogoso/Prestea open-pit mine, which is expected to produce in excess of 140,000 ounces in 2003 at a cash operating cost of less than $185/ounce, and the Wassa gold project, where Golden Star is currently constructing a new carbon in leach mine and expects to reach first gold production in early 2004. Golden Star is actively exploring its significant land position in Ghana, including the majority-owned Prestea underground gold mine, which has past production of in excess of 9 million ounces and where Golden Star is conducting an underground exploration drilling program. In addition, the Company has other gold exploration interests elsewhere in West Africa and in the Guiana Shield in South America. Golden Star has approximately 121 million common shares outstanding.

http://biz.yahoo.com/bw/031009/95668_1.html