Shanta Gold Limited (LON:SHG) has arranged a US$10mln loan to help develop the Singida gold deposit in Tanzania.
The loan requires at least US$15mln to be raised when Singida is floated on the Dar es Salaam stock exchange later this year.
Shanta though said it is looking to raise US$20mln in new equity for Singida from the IPO, with the miner to retain at least a 51% stake in the project.
Repayment of the loan will take three years and come from the project’s cash flows.
Singida has now received its environmental impact assessment (EIA) certificate from the government, added Shanta.