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The Markets
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The Markets
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Gold & silver

Shanta Gold ends bid talks as value not recognised in offers

After five years, Shanta is a 'transformed' company says chief executive

Shanta Gold said it has broken off talks with potential bidders Shandong and Chaarat Gold after concluding the deals offered did not reflect the value of the company.

A third bidder, Yintai Gold, had already dropped out of the process.

Shanta added it had a 'number of value catalysts in train for 2023' including increased gold production at New Luika in Tanzania; first gold pour at Singida; annual production of 100,000 oz pa; and an expansion of resources in Tanzania and West Kenya.

Eric Zurrin, chief executive, added: "After five years, Shanta is a transformed company and unrecognisable to its past as a 'single asset, single country' producer.

“In 2017 following a complete overhaul of the business, Shanta transitioned from a heavily indebted company to a profitable dividend-paying business, with debt repaid and an out-of-the-money hedge book extinguished.

“Going forward, we are on a strong and stable footing with a series of key milestones scheduled for 2023. This is an exciting time for the business and shareholders recognise the potential of the business.”

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