As previously announced, the loan facilities total $40 million, of which $20 million has been used to refinance the existing bank loan from FBN Bank (UK) Limited whilst the balance will be a standby facility to be used as required during the implementation of the New Luika Gold Mine Life of Mine Extension Project.
The loan facilities have a five year tenor and bear interest at a rate of LIBOR+4.9% per annum.
The finalisation of these facilities will lower the Company’s cost of funding and also provide greater financial flexibility for the development opportunities at New Luika, the broader Lupa Goldfields and Singida.
Shanta Gold CEO Toby Bradbury said: "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".
