Shanta Gold (LON:SHG) has received regulatory approval for the previously announced US$40mln loan facilities with Investec.
Some US$20 mln will be used to pay back FBN Bank (UK) Limited with the remainder to be used as a standby facility to be used as needed during the New Luika Gold Mine Life of Mine Extension Project.
Interest on the five year loan is LIBOR plus 4.9% per annum.
"The finalisation of these facilities will lower the company's cost of funding and also provide greater financial flexibility for the development opportunities at New Luika, the broader Lupa Goldfields and Singida," the miner said.
Dr Tony Bradbuty, chief executive of Shanta, said: "Together with our positive operating cash flow, the loan will put the company in a strong position to pursue upside potential through expansion and exploration opportunities."
Shanta's total gold sales over the whole of 2014 were 87,758 ounces at an average price of $1,289. The miner had 31,500 ounces hedged at the year end at a price of $1,240 per ounce.