Shanta Gold Limited (LON:SHG) told investors it has raised £176,000 (US$253,000) of additional capital through an open offer share sale to existing shareholders.
The open offer follows last month’s successful US$10.5mln share placing and US$5.25mln silver stream deal which rebooted the group’s finances.
In late May, Shanta launched the open offer which entitled existing shareholders to purchase up to a total of 38.4mln new shares - with one new share offered for every eight shares held. The new shares were priced at 6.5p each. If fully taken up it could’ve raised a total of £2.5mln.
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The New Luika gold mine is the company’s major asset and getting the mine back on track after first half re-development problems enabled it to finish the year with higher production, lower debts and sharply reduced costs.
New Luika produced just under 81,900 ounces of gold in 2015, not a huge amount by some standards but all–in costs for the year were a very competitive US$845 per ounce.
They are set to go lower still in the current year. Shanta is predicting output will rise up to a possible 87,000 ounces this year with costs to fall to between US$750-800.