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In the appendix it clearly states that other offers to buy Shanta Gold are open to the Board. The price however need to be 10% higher then the acquisition offer of 13.5p which of course is 14.85p. Lets all see if Gold fields or another company chooses to buy the company at that price. Shanta gold is being market tested and hence why the top two shareholders have gone along with all of this. There is no hurry. It will take time for presentations and documents made available to the court and EGM. If an offer as suggested arises in early January it may change everything here and if two companies bid market value will then prevail. If no offers arrive for Shanta then the argument is about a higher dividend then just 0.15p as the company are earning far higher amounts of monies during 2024.

Yes Mr Tibbs

It was a very long RNS with several appendixes. Superior offer scenario is in black and white and providing it is at 14.85p or higher it constitutes being a superior offer (+10%). The board are market testing the sales price and the real bonus for an acquirer is the West Kenya asset which they have invested around $40M to date which is valued at nothing in that superior offer price.

Mr Tibbs the more I have looked deeper into Shanta, I realise that the entire process is cancelled if a higher offer above 10% of what was proposed and the superior bid is taken. It is the first step in trying to sell the company. If Centamin wanted several million ounces of gold, they could bid $155M to get it and that delivers a brand new mine that cost $45M to build. Shanta would add 90,000 to 100,000 more ounces per year for the next 4 years at least which equates to 10 months of existing production. $400 an ounce profit would earn back the $155M but they will have all subsequent years as profit and the entire West Kenyan resource asset with grades above 5g/tonne for 3M ounces. Lot better metrics then Doropo.

Having read through the entire RNS again, I have not discovered any new risk on Shanta Gold that we would not already be aware of.

What is abundantly clear is that the new private concern is a diverse operation and not just a junior gold miner business. It appears the private vehicle can acquire funding at far more attractive rates to develop the West Kenya assets. The cost and its associated financing conditions for junior miners are expensive in comparison as it is subject to a significant negative bias or perceived risk. Hence the reason why I think Eric Zurrin was supportive on that issue. The new diverse structure with its associated business operations offers additionality to communities in Kenya and Tanzania and so the acquisition may have government support in both countries in what they propose to do.

At the moment we all have the disappointment of not having our own aspirations not being achieved. However, the documentation is open to superior offers and it appears the timelines could be generous enough to allow market testing of the 13.5p acquisition price.

Today gave an opportunity for portfolios to get adjusted and we may see the share volume traded drop quite a bit from today.

In the meantime I wish us all a Merry Christmas and Happy New Year. Tony

Looking back further investment monies were raised at 16p to develop the West Kenya asset. Anyone who bought at that time is underwater by 2.5p. If they are so keen on 13.5p why not offer a 1.5p dividend instead of 0.15p. It would have gone down somewhat better today but instead they were disrespecting longer term holders here.

What surprises me is that the share is not moving up to 13.5 and has moved backwards. Usually a share price is on the offer and we do not have games like this by the market maker and institutional holders. If they want to make private small investors more irritated they have done precisely that today.

I hope we do get the superior offer coming in and that this was the intention of the board all along.

The other side of the coin is what happens if gold tanks early next year. Everyone holding has a 13.5p offer on the table.

What Shanta needs to do is allow time in January for everyone to examine all this. If the vote was week 4 in January they will have given other interested companies a chance to make a superior offer. To be denied a chance for that to occur could lead to a lot of trouble. Lombard Odier almost certainly wants to test if an interested party is out there. I can see why they wanted their interest being made visible. If the board wants to calm things down a bit allow time to do it and prove nobody else is putting offers forward at this time and they were reasonable in allowing time for that to happen.

Tony

The takeover has a latest completion deadline in October 2024 although it should be done before that time frame otherwise I presume acquisition is terminated. The RNS confirms a divi payment for those holding on the declaration date which I presume is in March 2024. I presume it has to clear the court first and then goes to an EGM late January. A superior offer has to arrive in January before an EGM vote.

It will need to be greater than £155M. The £14M would be recovered by Q3 2024 imop.

In the event of an offer that is greater than 14.85p (+10%) and I assume maintains a dividend commitment of 0.15p the acquisition from Bidco would be withdrawn. What may of us waiting to see on the next 3 weeks is whether anyone wants the company at that price and invoke a withdrawal. The Board would say the offer was fair if nobody makes a higher offer and therefore vote for what is on the table.

The Board is aware of the directors conflicted on any offers received, but the position is clear what that offer has to be.

Mr tibbs

Lot of frustration on Shanta Board with the company selling itself on the cheap. Certainly hope it does not happen here on a takeover or management buy out. Tony

Now for sale below offer price. I wonder if this is a Shanta gold shareholder IQ test.

My interpretation of that comment is get your bids in for Shanta now.

Ketal owns around 4.25% of the company and you can bet Bidco (like the name) is snapping up shares getting sold now.

Https://www.msn.com/en-gb/money/other/shanta-gold-latest-company-to-leave-london-s-markets-after-142m-buyout/ar-AA1lMrGu

Read the end.

Love to know your views on the Shanta gold RNS this morning. Proposed to be taken private. If you can write any on that board if you get the chance.

Tony

Shanta gold was all set to find its market value in H1 this year. The value was going far higher than 13.5p 100,000 ounces sold at say $1950 an ounce = $195,000,000 income with gross profit of around $45M after tax easy. This alone was going to drive up the enterprise value by around 3p a share. Centamin was heading for 16p.

The company is up for sale. Ketal wants to sell his shares. This will be a lively share come January. Bidco reserves the right to pursue takeover so they may expect some bidding on the table from elsewhere.

13.08 buy and 12.92 to sell. makes no sense Should be 13.65 buy and 13.5 sell.

This does not make sense.

I could of taken an offer at 17-18p area but this is absurd. We are do very important RNS data and it may be suppressed by this low ball bid. In essence the company is now up for sale. Like many others I will wait and see if we get a higher offer. Anyone buying this for £200M is getting a bargain.

As we all know the front end project in South Africa delivered the proof of principle of economically producing rare earth sulphate. This achievement demonstrated the attainment of 60% product value and increased the share price by 4p. We await the RNS due in the near future to demonstrate delivery from this sulphate solution to individual rare earths. My question is it likely that we see a 2.7p increase in share price in attaining the remaining 40% value. This would then deliver a new trading range of 16-18p.

Before the RNS drops and that snaffle buyer returns again.