18 Dec 2012 07:00
18 December 2012
Shanta Gold Limited
("Shanta Gold" or the "Company")
Approval of US$30 Million Debt Facility
The Board of Shanta Gold, the East African focused gold mining company, is pleased to announce that a US$30 million medium term facility with FBN Bank (UK) Ltd ("FBN") has been approved by its credit committee and that the legal documentation is currently being finalised with the expectation that the first draw down will take place in January 2013. Shanta Gold will make an additional announcement relating to the terms of the loan once these terms are binding.
Proceeds from the new facility will be partially used to cover the remaining monthly principal repayments of the outstanding loans with FBN ($11.25m) and YA Global Master SPV Ltd ($5.3m). The proposed arrangement together with the proceeds from the October 2012 placing provides Shanta Gold with suitable headroom during the New Luika ramp up phase and greater flexibility going forward.
Mike Houston, CEO of Shanta Gold, commented:
"It was important, as relayed to shareholders, to put in place a suitable financial structure that would provide the necessary headroom during the early stages in the production growth curve and we are pleased to extend our banking relationship with FBN who have shown a strong commitment to the New Luika project
As we approach the end of Shanta Gold's first production period, I am pleased to confirm we are on track to achieve our modest year-end gold production target of 6,000oz. The past few months have been a strong learning curve for the operational team and this will continue into the first quarter of 2013 as production is ramped up with the improved plant facility as a result of the additional crusher unit which is now on site."
Enquiries:
Shanta Gold Limited | Tel: +255 (0) 22 2601 829 |
Mike Houston, CEO Edward Johnstone, FD | |
Nominated Adviser and Broker | |
Liberum Capital Limited | Tel: + 44 (0)20 3100 2000 |
Michael Rawlinson / Tom Fyson / Christopher Kololian | |
Financial Public Relations | |
FTI Consulting | Tel: +44 (0)20 7269 7100 |
Billy Clegg / Oliver Winters |
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 and achieved first gold pour in August 2012. The Company is admitted to trading on AIM and has approximately 462 million shares in issue.
For further information visit the Company's website: www.shantagold.com.