Shanta Gold Limited (LON:SHG) said Investec Bank is continuing due diligence on the potential impact of changes to the mining and fiscal regime in Tanzania.
Investec has offered a new US$50mln loan facility that will replace the gold miner’s existing US$40mln arrangement with EXIM Bank.
READ: Shanta on track for 80,000 ounces and unlikely to be deflected by political rumblings in Tanzania
Part of the new money has been earmarked to pay back US$15mln of convertible loan notes, which have a 13.5% coupon.
At September 30, Shanta said it had total liquidity of US$13.6mln including a cash balance of US$8mln and access to the undrawn unrestricted Exim Bank facility totalling of US$5.6mln out of US$7.5 mln.
Shanta said it would provide a further update on the debt restructuring to shareholders and the holders of the loan notes by 31 March 2018.