JOHANNESBURG (miningweekly.com) – LSE-listed Shanta Gold has secured a $40-million loan facility from the corporate and investment banking division of Investec Bank.
The group, through its operating subsidiary Shanta Mining, would use one-half of the funds to refinance an existing bank loan from UK-based FBN Bank, with the remaining $20-million set aside as a standby facility to be used as and when required.
The East Africa-focused gold production and exploration company said in a statement on Tuesday that the loan facility, which was subject to normal regulatory approvals from the Bank of Tanzania, had a five-year tenor and would bear interest at the London Interbank Offered Rate plus 4.9% a year.
“The finalisation of [this facility] will lower the company's cost of funding and also provide greater financial flexibility,” said outgoing CEO Mike Houston.
“The facility, together with the company's operating cash flow, place Shanta in a healthy position as it enters an exciting period with the extension of the life-of-mine at New Luika through opencast and underground mining and looks at other growth opportunities,” he concluded.