JOHANNESBURG (miningweekly.com) – East Africa-focused gold production and exploration company Shanta Gold has secured $40-million in loan facilities from Investec Bank.
The company said that its operating subsidiary Shanta Mining Company, would use $20-million of the $40-million loan facilities to refinance an existing bank loan from UK firm FBN Bank.
The balance would be used as a standby facility during the implementation of the New Luika gold mine life-of-mine extension project, in Tanzania.
The loan facilities had a five-year tenor and bore interest at a rate of 4.9% a year.
The facilities would lower the company's cost of funding and provide greater financial flexibility for the development opportunities at New Luika, the broader Lupa Goldfields and Singida.
"We are delighted to have received regulatory approval for these new and competitive loan facilities with Investec. Together with our positive operating cash flow, the loan will put the company in a strong position to pursue upside potential through expansion and exploration opportunities,” Shanta Gold CEO Dr Toby Bradbury said.