SHG.L Regulatory News (SHG)

13 Jun 2006 08:42

Shanta Gold Limited13 June 2006 Shanta Gold announces results for the period to 31 December 2005 Shanta Gold Limited ("Shanta Gold" or the "Company") was admitted to AIM on 11July 2005. The period under review was characterized by three significant achievements: • In May 2005, Shanta Gold's wholly-owned subsidiary Shanta GoldHoldings Limited (SGHL) acquired the entire issued share capital of ShantaMining Company Limited, Mgusu Mining Limited and Nsimbanguru Mining Limited,which together hold the Company's exploration interests in Tanzania; • On 11 July 2005, the Company was admitted to AIM, a market of theLondon Stock Exchange. At the same time the Company completed a placing of17,224,735 ordinary shares of 0.01p each ("Ordinary Shares"), at a price of 25pper share ("Placing Shares"), raising £3,300,000. At Admission the Company'smarket capitalization was £15,600,000. Each Placing Share was issued with awarrant entitling the holder to subscribe, at any time over the 2 yearsfollowing the date of Admission, for a further Ordinary Share in the Company ata price of 30p. The Company also issued to its AIM Admission advisors a total of2,700,000 warrants to subscribe, at anytime over the three years following thedate of Admission, for 2,700,000 ordinary shares in the Company at a price of25p. Following the growth in the share price Shanta Gold's current market caphas increased to over £37,000,000; • The Company has deployed exploration crews and equipment to ourprospecting projects in Tanzania, with aggressive exploration programmesyielding encouraging results at the Katario and Singida projects. In November a decision at board level to increase Shanta Gold's profile inTanzania resulted in the reorganization of the board. As a consequence GeorgeBennett stepped down from the position of Chief Executive Officer and WalterVorwerk relinquished his position as Chief Financial Officer. Chris Picken was appointed as chief operating officer based in Dar es Salaam.Mr Maheshkumar Patel was appointed alternate director to the board. Mahesh is aTanzanian resident (15 years) and has an excellent knowledge of local conditionsand the business environment in the country. Our drilling programme in Tanzania has continued apace. At Katario an 18 hole,2,061 metre reverse circulation drilling programme was completed in December2005 and confirmed the wide zones of mineralization in underground workings atKatario. The most promising exploration result however was the discovery at Singida of anew greenstone belt where some gold anomalies have been identified as drillingtargets. Announcements as to the results of initial exploration activities weremade on 7 February, 5 May and 6 June 2006. Shareholders are referred to theseannouncements for details. Shanta Gold has set clear targets for 2006: • The drilling programme on Singida has delivered promising explorationresults. It confirmed the discovery of high grade gold mineralization associatedwith regional scale geochemical gold anomalies. The Company is currentlyfocussing its resources on an extended drill programme with reverse circulationand diamond drill rigs on site. The directors believe total expenditure for theyear may exceed $8 million; and • As a result other exploration activities will be tailored to addressexploration licence and joint venture requirements and will mainly encompasspreliminary surveys at a cost of approximately $100,000. Following the exploration success at Singida, the Board has considered itprudent to re-establish an executive presence and Richard Shead (CEO) and WalterVorwerk (CFO) were appointed with effect from 1 June 2006. At the same time,George Bennett resigned from the board. At year end the company had US$5,300,000 available for further explorationactivities. Holders of approximately 3,900,000 warrants have begun the processto exercise them. This will raise approximately US$2,000,000. Financial Results Consolidated results for the Company have been prepared based on internationalfinancial reporting standards. As Shanta was incorporated in May 2005 these arethe first results of the group and therefore there are no comparative figures. INCOME STATEMENT Period to 31 December 2005 Notes US$000 Investment and operating income 137Exploration and evaluation expenditure (1,533)Administrative expenses (710)Share option costs (422)Operating loss (2,528) Loss per share basic and headline(US cents) 1 5.18Loss per share diluted(US cents) 2 5.17 BALANCE SHEET At 31 December 2005 US$000AssetsNon current assetsIntangible assets 671Property, plant and equipment 152Goodwill 3,318 4,141Current assetsOther debtors and prepayments 121Cash and cash equivalent 5,301 5,422Total assets 9,563 Equity and liabilitiesEquityShare capital and premium 10,020Share option reserve 422Warrant Reserve 672Translation Reserve 119Accumulated loss (2,528) 8,705 Non current liabilitiesLoans from related parties 508Current liabilitiesOther creditors and accruals 350Total equity and liabilities 9,563 CASH FLOW STATEMENT Period to 31 December 2005 US$000 Cash outflow from operations (745)Cashflows from investing activities (net) (112) Share issue proceeds (net) 5,774Loans received and repaid 384Cashflows from financing activities 6,158(Decrease)/increase in cash 5,301Cash and equivalents at the beginning of the period -Cash and equivalents at the end of the period 5,301 Statement of changes in equity For the period from 5 May 2005 to 31 December 2005 Share Share Share Warrant Translation Accumulated Capital Premium Options Reserve Reserve Loss TOTAL Balance on incorporation - - - - - -Shares issued 11 12,499 12,510Shares issue expenses (2 ,490) (2,490)Share option costs 422 422Warrant reserve 672 672Translation reserve 119 119Loss for the period (2,528) (2,528)Total capital and reserves 11 10 009 422 672 119 (2528) 8705 Notes 1. Calculated on the loss for the period divided by the weighted average number of shares is issue (48,791,164) 2. Calculated on the loss for the period divided by the weighted average fully diluted number of shares in issue (48,791,164) 3. Copies of the annual report for the period will be despatched to shareholders on 14 June 2006. Additional copies will be available to the public, free of charge, from the Company's registered office: Suite A, St Peter Port House, Sausmasez Street, St Peter Port, Guernsey, GY1 3PG. 4. A notice convening the annual general meeting together with a proxy form was posted to shareholders on Monday 12 June 2006. The AGM will be held at the company's registered office, Suite A, St Peter Port House, Sausmasez Street, St Peter Port, Guernsey, GY1 3PG on Wednesday 5 July at 11:00. This information is provided by RNS The company news service from the London Stock Exchange