Glencar Mining PLC
4 December 2001
Glencar Mining plc ('Glencar' or 'the Company')
Wassa Gold Project
Glencar announced on 27 November that Satellite Goldfields Limited (a 59.4%
indirectly owned subsidiary of the Company), the Senior Secured Lenders and
Golden Star Resources Limited had signed a letter setting out the intention of
Golden Star to complete the purchase of the Wassa Mine ('the Letter of
Intention').
The parties expected the Subordinated Lender (not a signatory to the Letter of
Intention) to consent to the sale but as consent has not been yet been
forthcoming, the Senior Secured Lenders have therefore enforced their security
and appointed a receiver to Satellite Goldfields Limited to ensure the timely
completion of the sale process.
The Company has requested the reconfirmation by the lenders of the commitments
given by them to Glencar earlier this year to limit and release Glencar's
guarantee on the satisfactory completion of the sale process (now expected by
end January 2002). Until these reconfirmations are received, Glencar reserves
any comment on the likely release of the parent company guarantee given by it
over the Wassa Project.
4 December, 2001
Press queries:
Hugh McCullough (Chief Executive): +00 353 (0)1 661 9974