Monday, 25th October 2004 (3116 views)

Golden Star Resources has announced it has entered an agreement with Moto Goldmines to purchase new shares in the company, making it the largest single shareholder in the business.

The deal is subject to a number of conditions such as completion of a review, approval by Moto shareholders and relevant regulatory approval.

Peter Bradford, Golden Star's President and CEO said: "This investment in Moto Goldmines is an excellent opportunity for Golden Star to be involved in the Kilo-Moto gold belt which is one of the few historically known large gold belts remaining in Africa that have not been re-developed using modern large scale mining methods."

The area that Moto's mines are based in has historical production of over 11 million ounces and a drilling programme this year has confirmed further strong gold opportunities.

Funds from Golden Star will be used for further exploration and development of Moto concessions.

Golden Star is a Canadian company with interests in gold exploration and development in West Africa and South America, whilst Moto is an Australian exploration business, based in Perth.

 

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