Shanta Gold Limited Power Station equipment financing (7386F)
May 22 2017 - 2:00AM
UK Regulatory
TIDMSHG
RNS Number : 7386F
Shanta Gold Limited
22 May 2017
22 May 2017
Shanta Gold Limited
("Shanta Gold", "Shanta", or the "Company")
Power Station equipment financing
Shanta Gold (AIM: SHG), the East Africa-focused gold producer,
developer and explorer, is pleased to announce that it has received
US$10.0 million financing from Exim Bank (Tanzania) Limited
("EXIM") following the commissioning in March 2017 of its 7.5 Mega
Watts ("MW") Power Station (the "Power Station") at the New Luika
Gold Mine ("NLGM" or "the Mine") located in the Lupa Goldfield in
southwest Tanzania.
Highlights:
-- US$10.0 million provided by Exim, one of the largest commercial banks in Tanzania;
-- Four-year term loan amortizing quarterly, bearing variable
interest at 7.25% per annum (2.75% below the Exim Base Lending
Rate);
-- Comprises US$7.5 million long term funding and US$2.5 million
short-term funding for working capital;
-- The term loan is secured against the NLGM Power Station which
was commissioned in Q1 2017 and is now fully operational;
-- NLGM power capacity has more than doubled to 7.5 MW following
the installation of the Power Station;
-- Terms are an improvement to the original agreement with a
competing lender previously agreed and announced in Q1 2016.
Toby Bradbury, Chief Executive Officer, commented:
"This power station has proven a great success for the New Luika
Gold Mine. It is now delivering reliable power with a significant
drop in per kilowatt hour power costs. In 2016, Shanta decided to
pay the capital costs of the power station out of cash flow in
anticipation of improved financing terms, which it has now realised
with the Exim term loan."
"The power plant's commissioning in Q1 2017 will serve NLGM for
many years and deliver the increased power required to support the
new underground operation that remains on schedule to deliver first
stope ore this quarter."
"As noted in Shanta's recent quarterly update, the Company
continues to defer non-essential expenditure, while it completes
the development of the underground operation, due to the large sum,
now outstanding, in VAT refunds."
Enquiries:
Shanta Gold Limited
Toby Bradbury (CEO) +255 22 2925148
Eric Zurrin (CFO)
Nominated Adviser and
Broker
Peel Hunt LLP
Matthew Armitt / Ross
Allister / Chris Burrows +44 20 7418 8900
Financial Public Relations
Tavistock
Jos Simson / Emily
Fenton / Barney Hayward +44 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, 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 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
END
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