New Loan Facilities Approved

RNS Number : 4276O

Shanta Gold Limited

28 May 2015

 



Shanta Gold Limited

 ("Shanta Gold" or the "Company")

New Loan Facilities Approved

Shanta Gold Limited, the East Africa focused gold production and exploration company, is pleased to announce that, through its operating subsidiary, Shanta Mining Company Limited, it has now completed formal documentation for loan facilities with Investec Bank Limited, acting through its Corporate and Investment Banking Division ("Investec") on the terms outlined in the announcement dated 31 March 2015, following receipt of regulatory approval from the Bank of Tanzania.

As previously announced, the loan facilities total US$40 million, of which US$20 million has been used to refinance the existing bank loan from FBN Bank (UK) Limited whilst the balance will be a standby facility to be used as required during the implementation of the New Luika Gold Mine Life of Mine Extension Project. The loan facilities have a five year tenor and bear interest at a rate of LIBOR+4.9% per annum.

The finalisation of these facilities will lower the Company's cost of funding and also provide greater financial flexibility for the development opportunities at New Luika, the broader Lupa Goldfields and Singida.

Dr. Toby Bradbury, CEO of Shanta Gold, commented:

"We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the Company in a strong position to pursue upside potential through expansion and exploration opportunities".

Enquiries:

Shanta Gold Limited

Tel: [phone]

Toby Bradbury / Patrick Maseva-Shayawabaya

Nominated Adviser and Joint Broker

Peel Hunt LLP

Tel: + 44 (0)20 7418 8900

Matthew Armitt / Ross Allister

Joint Broker

GMP Securities Europe LLP

Tel: + 44 (0)20 7647 2800

Richard Greenfield / Alexandra Carse

Financial Public Relations

FTI Consulting

Oliver Winters/Sara Powell

Tel: [phone]

About Shanta Gold Limited

Shanta Gold is an East African focused gold mining company. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties. The Company's flagship New Luika Gold Mine commenced production in August 2012 and produced 84,000 ounces in 2014. The Company is admitted to trading on AIM and has approximately 464 million shares in issue. For further information visit the Company's website: www.shantagold.com.

 

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