Shanta Gold, an East African focused gold mining company, has signed and drawndown of a 30m dollar medium-term facility with FBN Bank.
The proceeds of the facility will be used in part to cover the remaining monthly principal repayments of the outstanding loans with FBN ($10.0m) and YA Global Master ($5.3m). It will also provide the company with cashflow generated by its gold sales provides Shanta Gold with appropriate cash headroom during the New Luika ramp up phase.
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The facility is secured over the shares and business assets of Shanta's Tanzanian subsidiary company Shanta Mining Company and has an interest rate of LIBOR plus 8.0% per annum, with a 2.0% arrangement fee.
The facility is repayable over two years with a capital holiday for the first six months and repayment occurring over 18 equal monthly instalments thereafter.
The share price rose 6.29% to 19p by 15:14.
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