28th May 2015 08:41
LONDON (Alliance News) - Shanta Gold Ltd Thursday said it has secured USD40 million of loan facilities from Investec Bank Ltd, half of which will be used to refinance the company's existing loan facilities.
The facilities have a five year tenor and have a 4.9% interest rate and were originally announced in March. They have now been secured after its wholly-owned subsidiary completed the formal documentation.
Of the new facility, USD20 million will be used to refinance the existing bank loan from FBN Bank (UK) Ltd, it said. The remaining USD20 million will be used as required during the implementation of the New Luika cold mine life of mine extension project.
"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," said Chief Executive Toby Bradbury.
Shanta shares fell 1.7% to 7.25 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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