Gold miner Shanta Gold (LON:SHG) is supporting the ramp-up phase of its New Luika mine with a US$30 mln debt facility.
The firm is approaching the end of its first period of production from the mine in southwest Tanzania.
The facility is with FBN Bank and the legal documentation is currently being finalised. The first draw down is expected next month.
Chief executive Mike Houston told investors it was important the firm put in place a suitable financial structure to provide the necessary headroom during the early stages in the production growth curve.
"I am pleased to confirm we are on track to achieve our modest year-end gold production target of 6,000 ounces," he said.
"The past few months have been a strong learning curve for the operational team and this will continue into the first quarter of 2013 as production is ramped up with the improved plant facility as a result of the additional crusher unit which is now on site."
The new funds will be partially used to cover the remaining monthly principal repayments of the outstanding loans with FBN - $11.25m and YA Global Master SPV Ltd - $5.3mln, the firm added.
Earlier this month, broker Liberum nominated the company as its top junior gold pick after a visit to the New Luika mine.
The broker said the bottlenecks that hampered Shanta reaching full production at the mine have been identified and were well on the way to being resolved.