Golden Star Resources Ltd. (NYSE:GSS) has revealed on Tuesday a $30-million underwritten public offering of 40 million shares, which will be fulfilled on August 3 subject to regulatory requirements.

The underwriters can acquire a maximum of six million shares worth $4.50 million under a 30-day option.

The company has also announced a $65-million private offering of convertible senior notes due 2021, which will also be closed on August 3 subject to regulatory requirements.

The senior notes, which will mature on August 15, 2021, have an interest rate per annum of 7%, which is payable every first of August and February starting February 1, 2017. The private offering is applicable in the US, pursuant to the Rule 144A under the US Securities Act of 1933. Interested buyers outside the US are eligible for the purchase of the senior notes in accordance with the Regulation S under the said legislation.

Purpose of the Offerings

Golden Star Resources will use the net proceeds of about $28 million from the underwritten public offering and about $23 million from the private offering of senior notes to strengthen its financial position, particularly settling some of its outstanding debts.

Q2 Financial Highlights

On Monday, Golden Star Resources released its second quarter earnings report. For the period, the company saw an 80% year-over-year surge in capital expenditures to $23 million. Meanwhile, all-in sustaining costs (AISC) tumbled 7% to $1,185 an ounce from the same period last year.

Golden Star Resources had a total cash flow of $19.30 million, up from last year’s cash flow of $18.10 million. This is in line with the company’s guidance for the full year 2016.

Sam Coetzer, Golden Star Resources CEO and President, boasted that the second quarter was vital for the company. Accordingly, Golden Star Resources remains on track to realize its projections for the year, particularly in terms of production.

Cash operating costs at the Wassa Gold Mine jumped 6% year-over-year to $975 an ounce. At the Prestea Gold Mine, cash operating costs ended at $943 an an ounce, which is down by 26% from the same quarter in 2015.

Overall gold production for the period was seen at 42,461 ounces, meeting estimates.