Shanta Gold Limited Update on Debt Restructuring (8806T)
October 18 2017 - 1:00AM
UK Regulatory
TIDMSHG
RNS Number : 8806T
Shanta Gold Limited
18 October 2017
18 October 2017
Shanta Gold Limited
("Shanta Gold", "Shanta" or the "Company")
Update on Debt Restructuring
Shanta Gold Limited (AIM: SHG), the East Africa-focused gold
producer, developer and explorer, announces that Investec Bank
plc's due diligence period is continuing whilst it evaluates the
Tanzanian legislative changes announced by the Company on 30 June
2017 and 5 July 2017.
On 20 June 2017, the Company announced an agreement with
Investec Bank plc ("Investec") to implement a new US$50 million
("m") facility to replace the current US$40 m facility ("New
Investec Facility"), subject to due diligence, delivery of certain
Conditions Precedent, and documentation satisfactory to Investec.
The Company also announced its intention to repurchase the
outstanding unsecured subordinated convertible loan notes due April
2019 ("Loan Notes") using the proceeds of the New Investec
Facility. The Company's authority to buy back the Loan Notes
expires on 20 October 2017 and as the buyback of the Loan Notes is
to be funded through the above-mentioned facility from Investec, it
is conditional on the New Investec Facility being drawn down by the
Company.
Shanta will provide a further update on the debt restructuring
to shareholders and the holders of the Loan Notes by 31 March
2018.
As of 30 September 2017, Shanta has total liquidity of US$13.6 m
including a cash balance of US$8.0 m and access to the undrawn
unrestricted Exim Bank facility totalling of US$5.6 m out of US$7.5
m.
For more information please contact:
Enquiries:
Shanta Gold Limited
Eric Zurrin (CEO) +255 (0) 22 292
Luke Leslie (CFO) 5148
Financial Adviser, Nominated Adviser and Broker
Peel Hunt LLP
Ross Allister / Richard Crichton
/ Chris Burrows +44 (0)20 7418 8900
Financial Public Relations
Tavistock
Emily Fenton / Jos Simson /
Barney Hayward +44 (0)20 7920 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 project in Tanzania and holds exploration licences covering
approximately 1,500km(2) in the country. Shanta's flagship New
Luika Gold Mine commenced production in 2012 and produced 87,714
ounces in 2016. The Company has been admitted to trading on
London's AIM and has approximately 769 m shares in issue. For
further information please visit: www.shantagold.com.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
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