Accra, Ghana 18 July 2021. Future Global Resources (FGR) has discovered material inaccuracies in information provided by Golden Star Resources (GSR), which FGR relied upon in deciding to acquire the Bogoso Prestea mine. The financial impact of those inaccuracies is significant. FGR will continue to investigate the inaccuracies.
FGR notified GSR of the inaccuracies last week and required GSR to indemnify it in respect of the resulting financial losses it has sustained, in accordance with the provisions of the Bogoso Prestea purchase agreement.
Separately, FGR has recently stepped in to settle an outstanding and ongoing employee dispute relating to severance payments owed to staff at Bogoso Prestea which resulted in repeated industrial actions. In the absence of GSR’s participation, FGR negotiated with the staff to reach an agreement on severance which resulted in a peaceful return to operations and the cessation of the ongoing legal action. FGR claims the cost of this settlement from GSR given that GSR has responsibility for this matter under the purchase agreement.
In light of the above, FGR was not contractually obliged to make the payments that would otherwise be due on July 16, 2021 and will not be making the payment otherwise due on July 31, 2021. FGR and its major shareholder, Blue International Holdings Limited, are, and have been, in full compliance with the purchase agreement and their contractual obligations.
Ben Romney/ Ariadna Peretz
Tel: +44 (0)20 7466-5000
Kwabena G. Kugblenu