Member Info for Tornadotony

I put the valuation statement in previously as they ask to disregard for two reasons. The first was the data was historical and second was just illustrative. Reserves and Resources data is under JORC requirements. It is not illustrative data otherwise it is absolutely fraud conducted by Shanta management which is not the case either. The only historical element on the reserves and resources data is what has been mined out over the last 4 quarters of which information on 3 quarters has been published. What has not been published and is known to the board are the reserves and resources replacement data and what was mined out in Q4.

Let us all hope that by this Friday we have a much higher offer on the table from another gold mining company who wants 100,000 ounce production over the next 4 years and probably 60,000 over another 5 years afterwards from Tanzania assets alone. The West Kenya assets conversion from resources to reserves was also due in January 2025.

Two key areas to note.

Asset Valuations

The Independent Shanta Directors note that the various asset valuations published by Shanta in the 12 months before the commencement of the Offer Period were provided for illustrative purposes only, based on historic figures and, in the Independent Shanta Directors' view, are neither valid nor relevant in the context of the Acquisition or otherwise. The Independent Shanta Directors therefore disclaim those valuations, all of which should be discounted by Shanta Shareholders when considering the Acquisition or otherwise. It has been agreed with the Panel that these valuations are not relevant for the purposes of Rule 29 of the Takeover Code.

APPENDIX 2

BASES AND SOURCES

upon any competing offer for Shanta becoming or being declared unconditional in all respects (if implemented by way of a Takeover Offer) or otherwise becoming effective (if implemented by way of a Scheme); or

· if Bidco announces, with the consent of the Panel, that it does not intend to proceed with the Acquisition;

· a person, other than Bidco, announces a firm intention to make an offer (in accordance with Rule 2.7 of the Code) (a "Firm Third Party Offer"), however structured, for the entire issued and to be issued share capital of Shanta (save for those shares in Shanta already owned by such third party or by any person acting in concert with it), and the consideration payable for each share in the capital of Shanta under such Firm Third Party Offer is at least 10 per cent. greater than the amount or value of consideration offered under the Acquisition) (a "Superior Proposal"). If any Superior Proposal includes non-cash consideration, such as shares or other securities, the amount or value of the consideration offered under the Superior Proposal for the purposes of this paragraph shall be as determined by the Shanta Board (acting reasonably), having taken advice from its financial adviser; or

· upon any competing offer for Shanta becoming or being declared unconditional in all respects (if implemented by way of a Takeover Offer)

Https://www.gold-eagle.com/article/gold-stocks-pause-rare-earths-rally

I have mentioned several times that in the appendix of the 20th December RNS it defines what a superior offer price is for the acquisition proposal to be withdrawn. The price is 14.85p or as written in the RNS it is 10% above 13.5p.

I wish I was a financial guru that could get every investment and trading decision correct. Unfortunately the market tends to make a mess of what often seems the obvious thing to do or not to do.

I could buy 100,000 easy at 12.93p. Hargreaves and Lansdown have now listed Shanta as bid situation.

Will Shanta remain at 12.8p to 13p. This depends on whether a higher offer is made for the company. If RNS notices appear from Endeavour, Gold fields, Centamin for example, then the share price would rise as a result of competitive accumulation.

We all need to see what awaits us on 2 January. In the meantime gold and gold miners may drift back somewhat to energise a 10% plus rally later in January.

The Shanta reserves and resources in Tanzania are based on $1350 gold price where as Ore Corp is based on $1750 gold price!

Taking out this year's production from 2022 figures.

Tanzania mines that are functioning have 595,000 proven reserves. They are priced at $140 per ounce. This gives a value of $83.3M. The resources at a conversion of 50% to reserves amount 1M ounces at the proven reserve rate and the net value is $140M. The West Kenya resources without a mine valued at just $40 an ounce as indicated resource are valued at $45M. The grand total value is $268M.

The company should not offer a discount as the grade of ore is well above the Ore Corp grade that is below 2.2g/t and is priced as being economic to mine at a far higher gold price.

$268M for Shanta is 25.4 cents a share or 20.3p. All those who have said 20p valuation for Shanta including Eric himself are completely and totally correct.

The company has a claimed reserve but hardly no resources. The reserve is listed as probable.. 2.6M ounces as probable reserve is minus 10% on costing. 2.34M ounces at $80 per ounce with no functioning mine plus $16M = $203M. The reserves require both open pit and underground mine and so it is at 15% discount. The costing to build the mine are probably optimistic. The inferred ounces require substantive drilling.

As the company have not published drill results for both Tanzanian mines my vote is becoming a No. The data is crucial in providing an accurate valuation of the company.

My holding along with Mrs holding is 2.2M shares. I doubt we will get the courtesy of an RNS tomorrow to change that position.

Correction 33% Pensana drop not 50%, need another coffee.

V-247 Vigilant rare earth content is not published, but the tilrotors probably use rare earth magnets. With talk of self driving cars of late, I question if the rare earth content in vehicles with no pilot as with v-247, is something that would get reduced and replaced with other technology when the payload is either people or kit as it would require a lot of safety testing to convince purchasers to a non-rare earth concept.

Both pensana and rainbow rare have gone down since the second week of November. The only difference is the percentage pullback on pensana is 50% and rainbow is 20%. Hopefully both will change course in 2024.

Like the handle name Gordon. Welcome aboard.

Publican off topic,

Speaking of rainbows, Rainbow rare earth is due a very important RNS on the back end pilot production in Florida USA (possibly in January). A good result adds 40% value to the project. A second RNS on Brazilian laboratory analysis on stacked gypsum containing rare earths is due at some point as well. This could add further value. Apologies for mentioning it, but one for a watch list despite falling rare earth prices in the Chinese market. Tony

I mentioned clearing 10p yesterday. My next target forecast is 20p after normal market activity beyond 1 January. As time progresses the chances of funding increase. The logic being that it is easy to say no if the HZM events ran completely out of control. If the news is more promising to support the due diligence is taking more time to search out for more problems if any to avoid another hiatus. We should retest the high this morning sometime next week as is how I see it and edge higher towards 20p at pre-funding phase. Tony

Hardly anyone is at work in the city markets and in mining company communication offices. The Shanta contact email box was not operational yesterday afternoon. I doubt if anyone is picking up the phone either. Until we get past 1 January, the market is somewhat false. The only exception is gold as a number of countries join BRICS on 1 January. It appears both Tanzania and Kenya are planning to join BRICS in the future.

Three breakout attempts have been made at this level this month. Although pushed back to 2077, the energy to break through is increasing.

A lot of people here were probably taken aback on the briefing to the media that was given. It was like the Shanta Directors thought a lot of smaller and institutional Shanta investors somehow have acquired dementia or worse. I just pray Blackrock and other organisations are ringing up contacts in other gold mining companies to take Shanta Gold over. I just want all my concerns to be made redundant next week. Tony

Https://my.slaughterandmay.com/insights/client-publications/a-guide-to-takeovers-in-the-united-kingdom/

May need to download the PDF from here.