SHG.L Regulatory News (SHG)

11 Jul 2005 08:20

Shanta Gold Limited11 July 2005 Shanta Gold Limited Admission to trading on AIM • Exploration and development of gold deposits in Tanzania Shanta Gold Limited ("Shanta" or the "Company"; Ticker: "SNG"), the Tanzaniagold exploration and development company, announces that its shares commencedtrading on AIM today. The Company raised £3,486,184 (net of expenses) through a placing of 17,224,735ordinary shares of 0.01p, at a price of 25p per share (the "Placing Shares")giving the Company a market capitalisation of £15,556,184. WH Ireland Limited is the Company's Nominated Adviser and is co-broker withHaywood Securities (UK) Limited. Shanta is the ultimate holding company of Shanta Mining Company Limited ("SMCL"), Mgusu Mining Limited ("MML") and Nsimbanguru Mining Limited ("NML"). SMCL, established in 2001, holds all the interests in the Group's projects otherthan the interests in the Mgusu Project and Simba Nguru Project now owned by MMLand NML, respectively. In the period from its establishment to 31 March 2005,SMCL spent in excess of US$4.5m acquiring prospecting licences ("PLs"), as wellas conducting initial exploration on the Group's portfolio of explorationproperties, of which the most notable are: • Mgusu - an advanced gold exploration project located in the Geita Greenstone belt in Northern Tanzania with a gold resource of 741,000 oz (of which 127,000oz has been classed as Indicated Mineral Resource and 614,000 oz as an Inferred Mineral Resource) as detailed in SRK's report contained in the Company's AIM Admission Document. Prior to Admission, Mgusu was transferred to MML • Simba Nguru - a gold exploration project in central Tanzania which SRK confirms, if the gold grades prove to be consistent, has the potential to host in excess of 300,000 oz of gold. Prior to Admission, Simba Nguru was transferred to NML • Musoma District - Shanta's interest in this area consists of three projects (Katario, Ikungu and Suguti) all within 25 kilometres of each other. - SRK considers, on the basis of the underground sampling, geophysical interpretation and the gold grades seen at the old Tembo mine, that Katario has the potential to host in excess of 300,000 oz of gold. - An Inferred Mineral Resource of 185,000 oz of gold has been reported for Ikungu and SMCL has the right to earn up to 75% of the project on the satisfaction of minimum exploration expenditure commitments, and completion of a full feasibility study. Further details of SRK's opinion on these projects are set out in part 2 of theAIM Admission Document. In addition to those discussed above, SMCL has acquired 40 PLs covering an areaof 4,400km(2) in what the Board considers to be some of the most prospectiveareas of Tanzania. The majority (2,954km(2)) of this prospecting area is in theSingida district, which is the location of recent and significant informal goldmining activity. In addition, the Group has applied for a further 19 PLscovering 2,624km(2). The SMCL management team, which has extensive exploration and mining expertisewill now benefit from the advice of the Directors of Shanta, being individualswho have experience at board level in mining companies. The Directors believethat the combined skill set of the Board and management team will ensure thatthe Group is well placed to recognise and exploit any opportunities available toit within Tanzania, whilst at the same time ensuring shareholder interests areconsidered and protected. Commenting today George Bennett, CEO, of Shanta said: "Our core projects inTanzania have potential for significant production against the backdrop of astrong gold price. Our aim is to drive forward exploration, establish commercialviability of the projects and be in a position to construct and commission agold mine." For more information:Conduit PR W H Ireland Ltd Haywood Securities (UK) LtdMWB Building 11 St. James's Square Ryder Court78 Cannon Street Manchester 14 Ryder StreetLondon EC4N 6NQ M2 6WH London SW1Y 6QB Amanda Harris/ Laurence Read: David Youngman: Jeremy Wrathall:Tel: +44 (0) 207 618 8534 Tel: 0161 832 2174 Tel: 020 7031 8000Mob: +44 (0) 7900 322022amanda@conduitpr.com david.youngman@wh-ireland.co.uk jwrathall@haywood.com Background Tanzania Tanzania, created by the union of Tanganyika and Zanzibar, is located in EastAfrica and borders, amongst others, Mozambique, Malawi and Zambia. The union wasformalised in 1977 and in 1992 a multi-party system was introduced. Despite ahistory of some violence the country has become much more stable since 1985.From 1995, following the election of Benjamin William Mkapa, the country hasmaintained a relatively stable political environment with policies promotinghuman rights and non racial policies. The economy reflects this stability and has progressed steadily since 1995 withagriculture, tourism and mining all performing well. Mining is the fastestgrowing sector in Tanzania in terms of its contributions to GDP and its share ofexports. This growth was assisted by the World Bank's guidance, in drawing up anew mining policy for Tanzania in 1997 and investor-friendly mining law in 1998.The Mining Act of 1998 in particular guarantees investors' security of tenure,transparency in issuance and administration of mineral rights. Gold mining has dominated the Tanzanian mining industry for more than a century.Records of organised prospecting and mining date back to the German colonialperiod with gold discoveries in the Lake Victoria Goldfield in 1895. Tanzania isnow Africa's third largest gold producing country after South Africa and Ghana.Nonetheless, the country remains under explored in comparison with other goldproducers of its size and there is a high probability of future discoveries. Directors of the Company George Bennett, Chief Executive Officer, aged 44, is a member of theJohannesburg Stock Exchange with 19 years experience as a stockbroker /investment banker. He joined Menell, Jack Hyman, Rosenburg and Co in 1986 whichwas taken over by Frankel Krug in 1988. Between 1988 and 1994 he was a partnerat various stockbroking firms including Fergusson, Bros Hall Stewart & Co. In1994, whilst a partner at Simpson McKie Inc, the firm was acquired by HSBC PLCSecurities (South Africa) (Pty) Limited. While at HSBC he held positionsincluding Head of International and Proprietary Trading, Head of Corporate Salesand his last position was Head of Mining Research Sales. George resigned fromHSBC in May 2003. He joined the Group in September 2004. Walter Vorwerk, B. Com, Dip Datem, CA (SA), Chief Financial Officer, aged 54,has had extensive executive and operational experience within the SouthernAfrican mining industry and has held directorships of many industry-relatedcompanies including Vaal Reefs Mining and Exploration Co. Limited (the precursorto AngloGold Limited), Western Deep Levels Limited, Driefontein ConsolidatedLimited and Rand Refining Limited. He was Manager of Finance at AngloGold from1995 to 2002, where he oversaw and was involved in corporate finance, merger,acquisition and disposal activities. He was the Finance Director of AquariusPlatinum Limited from 2002 to 2003. He is involved in a corporate financepractice in South Africa called Interstices (Pty) Limited helping small tomedium clients in his field of expertise by providing corporate finance servicesto enable clients to achieve their commercial goals. He joined the Group in April 2005. Walton Imrie, Non Executive Chairman, aged 53, started his career instockbroking in South Africa in the early 1970's, and then took up employmentwith Shaw & Co in London. He started an independent financial consultancybusiness which eventually became the Swiss based asset management company,Kestrel SA. He has been involved with gold mining and exploration through anumber of vehicles including Simmer and Jack Mines Limited and SouthernProspecting (Pty) Limited. The latter company listed Randex and PotchefstroomGold Areas in 1980s in South Africa. Walton was a board member of FrancistownMining Limited which became the Toronto and Sydney listed Lionore MiningLimited. He is currently a director and shareholder of Pan African Mining (Pty)Ltd, a Zimbabwean gold producer. Richard Shead, BA CIS (SA), Non Executive Director, aged 52, was an executivedirector of Oxus Gold, responsible for corporate development from 2003 to 2004,prior to that he was chief executive officer of East Daggafontein Mines from1997 to 2002. Richard has also been managing director of Southern ProspectingLimited., a South African mineral exploration company and he has also workedwith Lydenburg Exploration Limited as managing director and Benguela ConcessionsLimited as chief executive officer. He joined the Group in April 2005. Ketan Patel, Non Executive Director, aged 38, attended schools and colleges inKenya, India and the United Kingdom. He worked extensively in tradingorganisations in the UK and since 1986 has traded agro-commoditiesinternationally. He is a senior director of Export Trading (Pty) Ltd and ismanaging director of the Sea Cliff and White Sands Hotels in Dar es Salaam. Heis also a director of Cielmac Ltd a property company in Tanzania. This information is provided by RNS The company news service from the London Stock Exchange