By TZ Business News Staff.
The company Shanta Gold wants to raise 30m US dollars (some Tsh. 70bn/-) to develop its Singida Gold mine through a local fund raising operation, TZ Business News has learned.
Documents are already lodged at Tanzania’s Capital Markets and Securities Authority (CMSA) for permit to raise the funds at the Dar es Salaam Stock Exchange.
The miner’s initial public offer (IPO) is awaiting technical agreements between two government authorities –the Tanzania Revenue Authority (TRA) and CMSA regarding the transaction TZ Business News is informed.
Shanta Gold is an East Africa-focused gold producer, developer and explorer. The Company is focused on its flagship asset, the New Luika Gold Mine (New Luika), located in southwestern Tanzania.
Arch Financial and Investment Advisory Managing Director, Iyen Nsemwa, said the IPO awaits CMSA and Tanzania Revenue Authority to agree on technical issue before the approval is given.
“We are waiting for the talk’s agreement on the technical issue between TRA and CMSA…to get an okay,” Mr Nswema said. Arch Financial is the sponsoring broker of the Shanta Gold IPO. The company will list the entire 30 million US dollar IPO at value of 500/- a share on DSE’s Enterprise Growth Market (EGM).
Shanta will retain at least 51 per cent ownership of Singida Gold and will operate the project.
Shanta has told investors financing talks for the development of Singida Gold are at an advanced stage and has published an updated assessment of the reserves at the Singida gold mining project.
The company has confirmed a JORC compliant reserve of 243,000 ounces of gold, with the mineralisation grading of 3 grams per tone.
The company noted that more than 90 per cent of the project’s contained gold reserve is located between surfaces to 120 metres, leaving further potential for additional reserves at further depth. Resources totaled 904,000 ounces of gold, with 11.8million tonnes grading 2.28 grams.
“The Singida reserve allows the company to move forwards towards construction and first production at Singida, confident in the fact that we have a number of high-grade open pits,” Eric Zurrin, Shanta chief executive said in a statement.
“Importantly, it is expected that this foundation will allow Singida to generate significant cashflow to, amongst other things, pay for regional exploration which will, over time, illuminate the Project’s full potential.”
The Singida reserve sits within a substantial resource and is located on a 4.9 km strike in a highly prospective greenstone belt. The reserve represents just 26 per cent of the existing total contained resources and is nearly all within only 120 meters from surface, highlighting the potential for reserve expansion.