Guyanor to restructure (May 26, 2004)

Golden Star Resources (GSC-T) will play the angel in a restructuring of French-based Guyanor Resources (GRL.B-T), providing continuing financing and forgiving an existing loan.

Under the deal, Golden Star takes over Guyanor’s Bon Espoir property and gets a joint-venture interest in the Paul-Isnard gold property, both in French Guiana. It also agrees to participate in a future equity financing by Guyanor. The two companies also plan to sell their interests in the Yaou and Dorlin gold properties.

Guyanor’s existing debt to Golden Star is forgiven until Guyanor receives cash flow from the Paul-Isnard property. The amount to be repaid is capped at US$16 million.

At Guyanor’s annual meeting at the end of June, management will present a proposal to shareholders for a share issue — probably a rights offering — for at most Eur 50 million ($83 million). The proceeds would go to acquire minority interests in producing mineral properties, particularly royalty interests.

Another proposal to be put before shareholders would see Guyanor’s Class A shares (traded in France) and Class B shares (traded in Canada) combined into a single class of common shares traded on the Paris March and the Toronto Stock Exchange.


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