SHG.L Regulatory News (SHG)

27 Mar 2007 13:02

Shanta Gold Limited27 March 2007 Shanta Gold Limited ("Shanta" or the "Company") Preliminary results for the year to 31 December 2006 The Board of Shanta is pleased to announce its preliminary audited results forthe year ended 31 December 2006. Highlights of the year • The discovery of a new greenstone belt at Singida hosting some exciting grades. • Discovery of strong geochemical anomalies at the Chunya Project. • Funding of the company (through the exercise of warrants) provided for planned exploration programmes. The discovery of a new greenstone belt at Singida is undoubtedly the highlightof the year. We have made excellent progress at Singida, now our most advancedproject in Tanzania, which, only 18 months ago, was just a grassrootsexploration prospect. Our exploration teams have completed 34,000 metres ofdrilling at five identified targets within the Londoni 1 region, all of whichlie within a 5.75 kilometre strike length. Some of the highlights of thedrilling programme completed to date are the intersections of some very highgold grades, particularly at the targets known as the Gold Tree, the Jem and theCorn Patch, where gold grades of up to 45 grammes per tonne have been recorded.What has been particularly encouraging at Singida is that virtually all theintersections encountered are within the parameters of open pit mining, at anaverage depth of 150 metres. Further south in Tanzania, at our Chunya project, some 400 kilometres fromSingida, our exploration teams have made solid strides in a geochemical samplingprogramme which has yielded a strong gold geochemical anomaly in excess of 50parts per billion gold (ppb Au), along a 6,500 metre strike. With no evidence ofprevious drilling at this target we have now mobilized a team to start a secondphase exploration programme in preparation for initial reverse circulationdrilling. Since the admission of the Company to AIM (a market of the London StockExchange) in July 2005, we have seen other flotations of junior exploration andmining companies active in Africa - still a highly prospective continent. Wehave been fortunate that, with our presence in Tanzania over a two-year period,we believe we can now boast firm and established relationships in that country,and with the excellent cooperation we have received from the authorities, wealso believe we have been able to make solid, indeed rapid progress. During the year we were fortunate to welcome Richard Jonah to the Shanta board.The Jonah family's close association with mining ventures in this region furtherstrengthens our position in this exciting sector in Tanzania. Richard brings ahappy combination of local knowledge and access to global experience to theShanta board. We believe that our presence on AIM continues to attract investors. In addition,with a number of warrants being exercised over the period, from a funding pointof view we believe we are adequately resourced to continue to advance ourexploration programme at Singida in order to prove up a resource, whilst we willalso be in a comfortable position to progress beyond the initial phase at Songeaand Chunya, the two greenfield projects in our portfolio. We also plan tocomplete our drilling programme at the Mgusu project during the year - Mgusubeing situated in the well-known Lake Victoria district greenstone belt. Holdersof warrants, issued at the time of admission, are reminded that these willexpire in June this year. Conversion of these warrants will further enhance ourability to fund our exploration programme, without having to raise capital inthe market for some time to come. As an exploration company we constantly need to re-evaluate our portfolio ofprospects and their accompanying licences in an effort to ensure thatshareholders get maximum value for their exploration dollars. During the year weadded strategic rights to our land position in Tanzania, concluding jointventure agreements on 28 primary mining licences. Looking to the future we will continue to work towards proving up a resource atSingida. With drilling starting at Chunya and Songea, we hope we will soon be ina position to report drilling results to shareholders from these prospects also. It would be remiss of me not to also thank the local communities and authoritieswho have been so supportive of our activities. We adopt a sense of responsibleinterface with local communities, as we strive to foster mutually beneficialrelationships in the areas we target for further prospecting. In conclusion Iwish to express my thanks to my fellow directors for their hands-on andenergetic support, and to our shareholders, for their continued loyalty. To ourstaff on the ground I must convey enormous gratitude for their relentlessefforts in what has turned out to be a key gold discovery. Financial Results Consolidated results for the Company have been prepared based on internationalfinancial reporting standards. INCOME STATEMENT Period to 31 Year ended 31 December 2005 December 2006 US$000 US$000 46 Operating income 2 (1533) Exploration costs (7395) (710) Administration expenses (1606) (422) Share option costs (726) (2619) Operating loss (9725) 91 Investment revenue 455 (2528) Net loss for the year/period (9270) 5.18 Loss per share basic and headline(US 12.27 cents) 1 5.17 Loss per share diluted(US cents) 2 9.54 1. Based on 75531028 weighted average shares in issue (2005 -48791164) 2. Based on 97168407 weighted average fully diluted shares (2005 -48939313) BALANCE SHEET At 31 December 2005 At 31 December 2006 US$000 US$000 Assets Non current assets 671 Intangible assets 1431 152 Property, plant and equipment 359 3318 Goodwill 3318 4141 5108 Current assets 121 Other debtors and prepayments 289 5301 Cash and cash equivalents 15546 5422 15835 9563 Total assets 20943 Equity and liabilities Equity 10020 Share capital and premium 29574 422 Share option reserve 1148 672 Warrant reserve 306 119 Translation reserve 400 (2528) Accumulated loss (11798) 8705 19630 Non current liabilities 508 Loans from related parties 340 Current liabilities 350 Other creditors and accruals 973 9563 Total equity and liabilities 20943 CASH FLOW STATEMENT Period to Year ended 31 December 31 December 2005 2006 US$000 US$000 (745) Cash flows from operating activities (7680) (112) Cash flows from investing activities (1205) (net) 5774 Share issue proceeds (net) 19191 384 Loans received and repaid (168) 6158 Cash flows from financing activities 19023 5301 Increase in cash and cash equivalents 10138 - Cash and equivalents at the beginning of 5301 year/period - Foreign exchange adjustment 107 5301 Cash and equivalents at the end of year/ 15546 period STATEMENT OF CHANGES IN EQUITYFor the year ended 31 December 2006 Share Share Share Warrant Translation Accumulated Capital Premium Options Reserve Reserve Loss TOTALBalance on incorporation - - - - - -Shares issued 11 12499 12510Shares issue costs (2490) (2490)Share Option costs 422 422Warrant costs 672 672Translation on 119 119consolidationLoss for the period (2528) (2528) Total equity as at 31December 2005 11 10 009 422 672 119 (2528) 8705Shares issued 6 19231 19237Shares costs (47) (47)Share Option costs 726 726Transfer on exercise ofwarrants 366 (366) -Translation on 281 281consolidationLoss for the year (9270) (9270) Total equity as at 31December 2006 17 29557 1148 306 400 (11798) 19630 Annual Report The Annual Report will be sent to shareholders on or about 2 April 2007.Additional copies will be available to the public, free of charge, from theCompany's registered office at Suite A, St Peter Port House, Sausmarez St, StPeter Port, Guernsey, GY1 2PU. Annual General Meeting The Company's Annual General Meeting will be held on 27 April 2007 at 11 am atthe offices of NMT Trustees at Suite A, St Peter Port House, Sausmarez St, StPeter Port, Guernsey. For further information contact: David Youngman, W.H. Ireland Ltd. Tel: +44 (0) 161 832 6644Walter Vorwerk, Shanta Gold Ltd Tel: +27 (0) 83 308 0080 This information is provided by RNS The company news service from the London Stock Exchange