21 Jun 2013 07:00
Shanta Gold Limited
("Shanta Gold" or the "Company")
Forward Sale Contracts
Further to the announcement dated 29 April 2013 and in view of the continuing volatile gold price environment, the upcoming capital spend to achieve the targeted levels of production and expected decrease in cash costs over the next 6-12 months, the Directors of Shanta Gold have felt it prudent to commit to a number of forward sale contracts over part of the 2013 and 2014 anticipated production.
The Company has now entered into forward sale contracts over an additional 9,000 ounces to be delivered during the period to March 2014. These forward sales were secured at an average price of $1,362 per oz. The Company now has in place total outstanding forward sales contracts over 30,000 ounces through to March 2014 at an average price of $1,398 per oz.
The ramp up in production at the New Luika Gold Mine is progressing satisfactorily with the upgraded crushing circuit commissioned in late June and the Company expects a substantial increase in throughput from July. The Company will be providing an update on its first half operating performance towards the end of July 2013.
Enquiries:
Shanta Gold Limited Tel: +255 (0) 22 2601 829Mike Houston, CEOEdward Johnstone, FD
Nominated Adviser and BrokerLiberum Capital Limited Tel: + 44 (0)20 3100 2000Michael Rawlinson / Tom Fyson / Christopher Kololian
Financial Public RelationsFTI Consulting Tel: +44 (0)20 7269 7100Oliver Winters / Ben Brewerton
About Shanta Gold Limited
Shanta Gold is an East African focused gold producing 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 in 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.