Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer, and explorer, is pleased to provide an update on its 2023 outlook and the approaches the Company has received.
Potential Offers Update
On 18 October 2022, the Board of Shanta announced that it had received approaches from Shandong Gold Group Co., Ltd (“Shandong”), Yintai Gold Co., Ltd (“Yintai”) and Chaarat Gold Holdings Ltd (“Chaarat”) that might lead to a potential offer for the Company. On 2 November 2022, Shanta subsequently confirmed that Yintai had decided not to proceed with an offer.
The Board continues to believe in the strength of Shanta’s business and the potential of its portfolio and that sensible consolidation in the junior mining sector can be beneficial in managing risk and optimising allocation of investment capital. However, the Board is also clear that it will not accept an offer or deal structure that does not deliver value for shareholders. Accordingly, after further engagement and having taken advice from its financial advisors, the Board has concluded that there is no merit in continuing discussions with Shandong and Chaarat, which both parties have accepted.
As such and in accordance with Rule 2.6(c) of the Code, the Board has determined that it is not appropriate to seek an extension to the deadline set out in the Company’s announcement dated 18 October 2022.
Outlook Update
Shanta remains focused on optimising and growing its quality portfolio to continue to deliver long-term sustainable returns for shareholders with a number of value catalysts in train for 2023.
These catalysts include:
· increasing production alongside a fourth consecutive year of increased mine life at the New Luika Gold Mine in Tanzania;
· delivering first gold pour at Singida, Tanzania in Q1 2023;
· achieving an annual production record of 100,000 oz pa; and
· increasing resources through exploration across Tanzania and West Kenya.
The Company intends to provide the market with its 2023 work programme in Q1.
Eric Zurrin, Chief Executive Officer, commented:
“After five years, Shanta is a transformed company and unrecognisable to its past as a ‘single asset, single country’ producer. In 2017 following a complete overhaul of the business, Shanta transitioned from a heavily indebted company to a profitable dividend paying business, with debt repaid and an out of the money hedge book extinguished. We developed a viable plan to bring the valuable Singida Gold Mine into production and will shortly complete the execution of that plan. Perhaps most significantly, in 2020, we acquired the West Kenya Project, one of the highest grading gold deposits in Africa, paying a very compelling price and expanded and upgraded its gold resources through targeted exploration.
Going forward, we are on a strong and stable footing with a series of key milestones scheduled for 2023. This is an exciting time for the business and shareholders recognise the potential of the business. The Board remains focused on delivering its exciting 2023 programme which will see Shanta Gold become a 100,000 oz per year gold producer .”
The person responsible for arranging this announcement on behalf of Shanta Gold Limited is Eric Zurrin, Chief Executive Officer
For further information, please contact:
Shanta Gold Limited
+44 (0) 14 8173 2153
Eric Zurrin (CEO)
Luke Leslie (CFO)
