29th Mar 2019 13:32
LONDON (Alliance News) - Shanta Gold Ltd on Friday that the financing of the Singida Gold Mining project in Tanzania will be done so by the listing of project holding company Singida Resources PLC to the Dar es Salaam Stock Exchange.
Singida will process with an initial public offering to raise at least USD20 million, which is expected to take six to 12 months to complete.
Proceeds would go towards financing the upfront capital to bring the project into production and provide added funds for expanding the exploration targeting resource.
Should the IPO go through, Shanta Gold will retain a 51% operating interest in the project.
In December, Shanta Gold announced Singida's economics, including an average annual production of 26,000 ounces per annum for an initial six-year period from open pit mining.
Pre-production capital expenditure for the project was estimated to total USD16 million, while working capital was forecast to be USD3 million. Overall, it expects the overall life of project cash cost to be USD794 per ounce.
"As previously communicated, we are focused on bringing Singida into production through asset-level financing that unlocks value for Shanta Gold shareholders while also allowing the company to retain a controlling interest in this valuable asset. I am pleased with the initial feedback from institutional investors across East Africa who are seeking US dollar-linked investments in support of industrialisation," said Chief Executive Officer Eric Zurrin.
Shares in Shanta Gold were down 3.0% at 6.64 pence on Friday.
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