28 May 2015 07:00
Shanta Gold Limited
("Shanta Gold" or the "Company")
New Loan Facilities Approved
Shanta Gold Limited, the East Africa focused gold production and exploration company, is pleased to announce that, through its operating subsidiary, Shanta Mining Company Limited, it has now completed formal documentation for loan facilities with Investec Bank Limited, acting through its Corporate and Investment Banking Division ("Investec") on the terms outlined in the announcement dated 31 March 2015, following receipt of regulatory approval from the Bank of Tanzania.
As previously announced, the loan facilities total US$40 million, of which US$20 million has been used to refinance the existing bank loan from FBN Bank (UK) Limited whilst the balance will be a standby facility to be used as required during the implementation of the New Luika Gold Mine Life of Mine Extension Project. The loan facilities have a five year tenor and bear interest at a rate of LIBOR+4.9% per annum.
The finalisation of these facilities will lower the Company's cost of funding and also provide greater financial flexibility for the development opportunities at New Luika, the broader Lupa Goldfields and Singida.
Dr. Toby Bradbury, CEO of Shanta Gold, commented:
"We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the Company in a strong position to pursue upside potential through expansion and exploration opportunities".
Enquiries:
Shanta Gold Limited
Tel: +255 (0) 22 2601 829
Toby Bradbury / Patrick Maseva-Shayawabaya
Nominated Adviser and Joint Broker
Peel Hunt LLP
Tel: + 44 (0)20 7418 8900
Matthew Armitt / Ross Allister
Joint Broker
GMP Securities Europe LLP
Tel: + 44 (0)20 7647 2800
Richard Greenfield / Alexandra Carse
Financial Public Relations
FTI Consulting
Oliver Winters/Sara Powell
Tel: +44 20 3727 1000
About Shanta Gold Limited
Shanta Gold is an East African focused gold mining 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 August 2012 and produced 84,000 ounces in 2014. The Company is admitted to trading on AIM and has approximately 464 million shares in issue. For further information visit the Company's website: www.shantagold.com.