The treasure chest of Golden Star Resources (NYSEMKT:GSS) now holds a little more coin. The company announced it has finalized a $50 million secured medium-term loan facility with pan-African lender Ecobank Ghana. The loan has a term of five years from the date of initial drawing, and carries an annual interest rate of LIBOR + 9%, payable monthly. It is secured by the firm's physical assets, among other properties.
The proceeds will be used for the continued operation of the company's Wassa mine, which is located in the southwest of Ghana.
Alluding to the high interest rate of the facility, Golden Star admitted that market conditions for gold producers are "difficult" at the moment.
Fool contributor Eric Volkman has no position in Golden Star Resources, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.