SHG completes €2.1m finance agreement

Shanta Gold has completed a roughly €2.1m finance agreement with Sandvik Mining and Construction OY.

The financing would be used to purchase underground mobile equipment and was repayable quarterly in two tranches over respective 36 month periods.

The first tranche would be repayable from June 2017 and the second from October 2017. Both tranches would carry a fixed interest cost of 6.5%.

The equipment would arrive in Tanzania in stages from May 2017.

This purchase was part of Shanta's capital programme initially outlined in the 2015 Base Case Mine Plan for its flagship asset, the New Luika Gold Mine located in the Lupa Goldfield, in southwest Tanzania.