Shanta Gold, an East African focused gold mining company, has signed and drawndown of a 30m dollar medium-term facility with FBN Bank.
The proceeds of the facility will be used in part to cover the remaining monthly principal repayments of the outstanding loans with FBN ($10.0m) and YA Global Master ($5.3m). It will also provide the company with cashflow generated by its gold sales provides Shanta Gold with appropriate cash headroom during the New Luika ramp up phase.
Mike Houston, Chief Executive Officer of Shanta Gold, said: "We are pleased to have finalised and drawn down sufficient funds to provide the necessary headroom during the early stages in the production growth curve and to enter into this new phase in banking relationship with FBN who continue to show a strong commitment to the New Luika project."
The facility is secured over the shares and business assets of Shanta's Tanzanian subsidiary company Shanta Mining Company and has an interest rate of LIBOR plus 8.0% per annum, with a 2.0% arrangement fee.
The facility is repayable over two years with a capital holiday for the first six months and repayment occurring over 18 equal monthly instalments thereafter.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.