Shanta Gold Limited (AIM:SHG, OTC:SAAGF) signed binding definitive documents with Stanbic Bank Tanzania Limited for a US$20mln loan facility.
The money will be used to accelerate growth in Shanta's portfolio.
"The signing of this four year US$20mln facility is a significant step for Shanta as it will enable the company to accelerate growth across the wider portfolio, specifically at the Singida project where we are now fully funded, as we look to reach our target of becoming a plus-100,000 ounce per annum gold producer in Tanzania,” said Shanta chief executive Eric Zurrin.
“With the additional news of a material production increase at New Luika gold mine, where we have seen the strongest level of output in over 12 months, we can be confident that the task of reaching that plus-100,000 ounce target by the first quarter of 2023 has been significantly de-risked.”
Production at New Luika in May 2022 hit its highest level in over 12 months.
Zurrin added that he remained confident that Shanta would achieve between 68,000 and 76,000 ounces of gold production this year.
Singida is fully funded into positive cash flow, and is scheduled for first gold pour in the first quarter of 2023.