https://www.miningweekly.com

Shanta receives $5.25m silver streaming payment

17th November 2016

By: Anine Kilian

Contributing Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – East Africa-focused gold producer Shanta Gold has received an advanced payment of $5.25-million as part of a silver streaming agreement (SSA) with privately held Guernsey-based investment company Silverback.

The SSA was signed in May.

In addition to the advance payment, Silverback will pay Shanta 10% of the value of silver sold at the prevailing silver price at the time of deliveries.

The SSA relates solely to silver by-product production from Shanta’s New Luika gold mine, in Tanzania, with minimum silver delivery obligations of 608 970 oz over a 6.75-year period.

The SSA will expire after ten years and there are no minimum ounce obligations after 2022.

The SSA will be secured against Shanta’s three Tanzania-based Singida gold project mining licences and the company is putting the necessary arrangements in place with private bank Investec to facilitate this.

The security amortises over the 6.75 years of the silver deliveries and automatically subordinates should Shanta raise a minimum $6-million of project finance for Singida’s development.

Shanta produced 121 682 oz of silver in 2015, representing 2% of yearly revenue.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024
Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.149 0.186s - 107pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: