re: agrees to acquire adjacent west african gold p Well at the...

re: agrees to acquire adjacent west african gold p Well at the current rate that will last another 6 months & by then the resource could be around 2m oz & in the current gold climate a t/o offer may be on the cards. Canadian interests have been buying up ADU lately. ADU still a buy on weakness & hold.

Remember this t/o next door to ADU in sep '05.


27/09/2005
Golden Star Resources to Acquire St. Jude Resources for US$118 Million
DENVER and VANCOUVER, British Columbia, Sep 27, 2005 (BUSINESS WIRE) -- Golden Star Resources Ltd. (TSX: GSC) (AMEX: GSS) ("Golden Star") and St. Jude Resources Ltd. (TSX.V: SJD) ("St. Jude") are pleased to announce that they have signed a pre-merger agreement whereby Golden Star will acquire all of the outstanding shares of St. Jude (the "Transaction") on the basis of 0.72 of a Golden Star common share for every St. Jude common share. The Boards of Directors of both companies have unanimously approved the Transaction, completion of which is conditional on the execution of a definitive agreement, approval of St. Jude shareholders, requisite regulatory and court approvals as well as satisfaction of other customary conditions. The pre-merger agreement provides Golden Star with customary deal protection mechanisms.

The terms of the Transaction imply a purchase price of CDN$3.10 per St. Jude share (based on the closing price of Golden Star on the TSX on September 26, 2005) representing a premium of 38% to the 20-day average closing price of St. Jude common shares on the TSX Venture Exchange. Upon completion of the Transaction, St. Jude shareholders would own approximately 19% of Golden Star on a fully diluted basis. The transaction would be highly accretive to Golden Star's net asset value per share and is expected to be accretive to cash flow per share from 2007.

St. Jude's principal assets are the Hwini-Butre and Benso projects at the southeastern end of the prolific Ashanti gold belt region in Ghana. Together, Hwini-Butre and Benso have total near surface attributable measured and indicated resources of approximately 15.1 million tonnes at an average grade of 2.71 grams per tonne for contained gold of about 1.3 million ounces.(1)

In addition, St. Jude has several other highly prospective advanced exploration projects in Ghana, Burkina Faso and Niger.

Peter Bradford, President and CEO of Golden Star, said: "The acquisition of St. Jude delivers properties in Ghana with high-grade non-refractory gold resources that are within haulage distance to our Wassa gold mine. In assessing development scenarios for these properties, we will consider both stand-alone development options and the opportunity to mine and haul this high-grade material to Wassa, extending the mine life and increasing production at lower cash costs with minimal additional capital investment."