Shanta Gold Limited EUR2.1 m underground equipment financing (4796F)
May 18 2017 - 1:00AM
UK Regulatory
TIDMSHG
RNS Number : 4796F
Shanta Gold Limited
18 May 2017
18 May 2017
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Completion of EUR2.1 million underground equipment financing
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to announce that it has
completed a finance agreement with Sandvik Mining and Construction
OY. The approximately EUR2.1 million (US$2.3 million) financing
will be used to purchase underground mobile equipment and is
repayable quarterly in two tranches over respective 36 month
periods. The first tranche will be repayable from June 2017 and the
second from October 2017. Both tranches will carry a fixed interest
cost of 6.5%.
The equipment will arrive in Tanzania in stages from May 2017.
This purchase is part of Shanta's capital programme initially
outlined in the 2015 Base Case Mine Plan for its flagship asset,
the New Luika Gold Mine located in the Lupa Goldfield, in southwest
Tanzania.
Financing Highlights:
-- EUR2,052,183 (US$2.3 million) financing, repayable quarterly
over a 36 month period from June 2017 (EUR1,473,537) and from
October 2017 (EUR578,646) respectively; and
-- Fixed interest cost of 6.5%.
Toby Bradbury, Chief Executive Officer, commented:
"This is our second equipment financing with Sandvik over the
last 15 months which is an important pillar of our financing plan
for the underground capital development programme at our flagship
asset, the New Luika Gold Mine."
Enquiries:
Shanta Gold Limited
Toby Bradbury (CEO) +255 22 2925148-50
Eric Zurrin (CFO)
Nominated Adviser and
Broker
Peel Hunt LLP
Matthew Armitt / Ross +44 20 7418
Allister / Chris Burrows 8900
Financial Public Relations
Tavistock
Jos Simson / Emily +44 20 7920
Fenton / Barney Hayward 3150
About Shanta Gold
Shanta Gold is an East Africa-focused gold producer, developer
and explorer. It currently has defined ore resources on the New
Luika, Nkuluwisi and Singida projects in Tanzania and holds
exploration licences over a number of additional properties in the
country. Shanta's flagship New Luika Gold Mine commenced production
in 2012 and produced 87,713 ounces in 2016. The Company is admitted
to trading on London's AIM and has approximately 583 million shares
in issue. For further information please visit:
www.shantagold.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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