SHG.L Regulatory News (SHG)

7 Oct 2005 11:03

Shanta Gold Limited07 October 2005 7 October 2005 SHANTA GOLD ISSUES INTERIM RESULTS FOR THE PERIOD ENDED 30 JUNE 2005 Shanta Gold Limited ("Shanta" or the "Company") was admitted to AIM on 11 July2005. Prior to this date no trading took place in the Company. Limited exploration activity was undertaken by Shanta Mining Company Limited,the Company's wholly owned operating subsidiary in Tanzania, during the periodunder review. The focus of activities since the end of the period has been onextensive geological mapping in the Singida properties. Through this thegeological team has identified key areas for soil geochemical analysis andstream sediment sampling to take place. In addition, areas that consist ofmainly granites, which are unlikely to be highly prospective, have beenidentified and may be dropped in the annual Prospecting Licence ("PL") renewalprocess saving holding costs and PL fees. It is anticipated that drilling will commence at the Katario Project ("Katario")during October 2005. The programme of 2,000 metres of reverse circulationdrilling is expected to be completed within a two to three month period andshould provide data to help delineate the extent of the orebody. On completionof the drilling at Katario the board intends to implement its plans for furtherdrilling at Mgusu in order to expand its resource base and to take this 741kozresource project to its next stage of development. On 1 September, 2005, Shanta announced the intention to appoint a chiefoperating officer based in Tanzania; the closure of the Johannesburg office, andthe move from executive to non-executive director positions for George Bennet(Chief Executive Officer) and Walter Vorwerk (Chief Financial Officer). MrBennet will continue to interact with Shanta's investors and Mr Vorwerk willassume the role of chairman of the audit committee. This development is expectedto achieve savings of approximately US$400 000 over 2 years. Financial Results Consolidated results for the Company have been prepared based on internationalaccounting standards. As Shanta was incorporated in May and had no transactionsprior to listing comparative figures would be meaningless and are therefore notprovided. PROFIT AND LOSS ACCOUNT Period to 30 June 2005 US$000Turnover -Exploration and evaluation expenditure (14)Administrative expenses (28)Operating loss (42)Loss per share (US cents) 2 0.52 BALANCE SHEET At 30 June 2005 US$000AssetsNon current assetsIntangible assets 1,281Property, plant and equipment 134Goodwill 3,425 4,840Current assetsOther debtors and prepayments 101Total assets 4,941 Equity and liabilitiesCapital and reservesShare capital 4,758Accumulated loss (42) 4,716 Non current liabilitiesLoans from related parties 147Net current liabilitiesOther creditors and accruals 78Total equity and liabilities 4,941 CASH FLOW STATEMENT Period to 30 June 2005 US$000Cashflows from operating activitiesLoss before tax (42)(Increase) /decrease in accounts receivable (1)Increase /(decrease) in accounts payable 18Cash outflow from operations (25)Cashflows from investing activitiesInvestment in intangible and tangible assets (47)Cashflows from financing activitiesLoans from related parties 180Share issue expenses (160) 20(Decrease)/increase in cash (52)Cash and equivalents at the beginning of the period 52Cash and equivalents at the end of the period - 1. These financial statements have been approved by the boardof directors but are un-audited. The financial information contained in these statements does not constitute statutory accounts. 2. The loss per share was calculated from the loss for theperiod attributable to ordinary shareholders of US$ 41,550 divided by thetime-weighted average number of shares in issue during the period of 8,035,716.There is no diluting effect of share options or warrants on the basic loss pershare at 30 June 2005. 1. The financial statements have been prepared in accordancewith International Financial Reporting Standards. For further information: Shanta Gold Richard Shead: Mobile: +27 (0) 82 654 1821 Walter Vorwerk Mobile: +27 (0) 83 308 0080 Conduit PR Amanda Harris Tel: +44 (0) 207 618 8760 Mobile: +44 (0) 7900 322 022 This information is provided by RNS The company news service from the London Stock Exchange