TIDMSHG
RNS Number : 2781G
Shanta Gold Limited
14 November 2022
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT
FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR
FOR IMMEDIATE RELEASE
14 November 2022
Shanta Gold Limited ("Shanta" or the "Company")
Update on Recent Approaches and Outlook
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer, and explorer, is pleased to provide an update on its
2023 outlook and the approaches the Company has received.
Potential Offers Update
On 18 October 2022, the Board of Shanta announced that it had
received approaches from Shandong Gold Group Co., Ltd ("Shandong"),
Yintai Gold Co., Ltd ("Yintai") and Chaarat Gold Holdings Ltd
("Chaarat") that might lead to a potential offer for the Company.
On 2 November 2022, Shanta subsequently confirmed that Yintai had
decided not to proceed with an offer.
The Board continues to believe in the strength of Shanta's
business and the potential of its portfolio and that sensible
consolidation in the junior mining sector can be beneficial in
managing risk and optimising allocation of investment capital.
However, the Board is also clear that it will not accept an offer
or deal structure that does not deliver value for shareholders.
Accordingly, after further engagement and having taken advice from
its financial advisors, the Board has concluded that there is no
merit in continuing discussions with Shandong and Chaarat, which
both parties have accepted.
As such and in accordance with Rule 2.6(c) of the Code, the
Board has determined that it is not appropriate to seek an
extension to the deadline set out in the Company's announcement
dated 18 October 2022.
Outlook Update
Shanta remains focused on optimising and growing its quality
portfolio to continue to deliver long-term sustainable returns for
shareholders with a number of value catalysts in train for
2023.
These catalysts include:
-- increasing production alongside a fourth consecutive year of
increased mine life at the New Luika Gold Mine in Tanzania;
-- delivering first gold pour at Singida, Tanzania in Q1 2023;
-- achieving an annual production record of 100,000 oz pa; and
-- increasing resources through exploration across Tanzania and West Kenya.
The Company intends to provide the market with its 2023 work
programme in Q1.
Eric Zurrin, Chief Executive Officer, commented:
"After five years, Shanta is a transformed company and
unrecognisable to its past as a 'single asset, single country'
producer. In 2017 following a complete overhaul of the business,
Shanta transitioned from a heavily indebted company to a profitable
dividend paying business, with debt repaid and an out of the money
hedge book extinguished. We developed a viable plan to bring the
valuable Singida Gold Mine into production and will shortly
complete the execution of that plan. Perhaps most significantly, in
2020, we acquired the West Kenya Project, one of the highest
grading gold deposits in Africa, paying a very compelling price and
expanded and upgraded its gold resources through targeted
exploration.
Going forward, we are on a strong and stable footing with a
series of key milestones scheduled for 2023. This is an exciting
time for the business and shareholders recognise the potential of
the business. The Board remains focused on delivering its exciting
2023 programme which will see Shanta Gold become a 100,000 oz per
year gold producer ."
The person responsible for arranging this announcement on behalf
of Shanta Gold Limited is Eric Zurrin, Chief Executive Officer
For further information, please contact:
+44 (0) 14 8173
Shanta Gold Limited 2153
Eric Zurrin (CEO)
Luke Leslie (CFO)
Liberum Capital Limited (Joint Financial Adviser, +44 (0)20 3100
NOMAD and Broker) 2000
Corporate Broking
Scott Mathieson / Ed Thomas / Nikhil Varghese
/ Lucas Bamber
M&A
Tim Medak / Mark Harrison
Treadstone Resource Partners (Joint Financial +61 (0) 2 9210
Adviser) 5600
Ross King / Adam Bill
+ 44 (0) 203
FTI Consulting (Media enquiries) 727 1000
Sara Powell
Nick Hennis
Rule 26.1 disclosure
In accordance with Rule 26.1 of the Code, a copy of this
announcement will be available (subject to certain restrictions
relating to persons resident in restricted jurisdictions) at
www.shantagold.com/investors/takeover-offer/ by no later than 12
noon (London time) on the business day following the date of this
announcement. The content of the website referred to in this
announcement is not incorporated into and does not form part of
this announcement.
Important information
This announcement is not intended to, and does not, constitute,
represent or form part of any offer, invitation or solicitation of
an offer to purchase, otherwise acquire, subscribe for, sell or
otherwise dispose of any securities or the solicitation of any vote
or approval in any jurisdiction whether pursuant to this
announcement or otherwise.
The distribution of this announcement in jurisdictions outside
the United Kingdom may be restricted by law and therefore persons
into whose possession this announcement comes should inform
themselves about, and observe, such restrictions. Any failure to
comply with the restrictions may constitute a violation of the
securities law of any such jurisdiction.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEAXFLFANAFEA
(END) Dow Jones Newswires
November 14, 2022 02:41 ET (07:41 GMT)
Shanta Gold (LSE:SHG)
Historical Stock Chart
From Apr 2024 to May 2024
Shanta Gold (LSE:SHG)
Historical Stock Chart
From May 2023 to May 2024