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Market: AIM
Sector: General Mining - Gold
EPIC: SHG
Latest Price: 19.50p  (0,00%)
52-week High: 41.25p
52-week Low: 17.75p
Market Cap: 62.17M
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Shanta Gold
www.shantagold.com

Shanta Gold Limited is an exciting gold exploration and development company, engaged in advanced and greenfields exploration in highly prospective under-explored areas in Tanzania. Shanta boasts a strong board and an experienced mining and exploration management team, combined with influential Tanzanian shareholders and partners.

Full Shanta Gold profile here
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Shanta Gold unveils new financing to take New Luika mine into production

30th Jan 2012, 3:33 pm by Jamie Ashcroft Work began last year and New Luika mining operation is expected to begin commissioning in the coming before first production in April.

Shanta Gold (LON:SHG) told investors that in the past two months it has raised US$25 million on favourable terms and without equity dilution.

This afternoon the firm announced that it has had a US$15 million credit facility approved with FBN Bank (UK) Limited. It said the first draw-down will take place either on or after February 13.

It has also agreed a new US$5 million loan, which is backed by an equity line facility that is being provided by Yorkville Advisor’s YA Master fund. 

Today’s deals follow the US$5 million bridging loan it secured from Export Holdings Ltd in December.

The cash is being earmarked to help fund the New Luika mine, in Tanzania, through to production by April.

"Effectively Shanta has raised US$25 million since December 2011, without equity dilution, on favourable terms,” said chief executive Gareth Taylor.

“This funding will allow for operation of the company through to production at the New Luika Gold Mine (NLGM) in April of this year.”

Taylor says the mine is on track for cold commissioning in the coming weeks. This will be followed by hot commissioning in March, first production in April and full production by the end of the second quarter of this year, he added.

New Luika is one of two gold mine development projects that the company is pursuing. The other is Singida project, which is also located in Tanzania.

"Having received the mining licences for the Singida project the Board is now seeking to progress the Resettlement Action Plan - for people affected by the mine - and the manufacturing, purchase and transport of the key equipment for project construction,” Taylor said. 

“Shanta Gold is in discussions, at varying levels of development, with a number of institutions to secure the funding required for the above."

 

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