Shanta Gold secures $10m loan as it awaits listing in Tanzania
Aim-listed Shanta Gold has secured a $10-million loan facility from a privately held, East Africa-based, multinational conglomerate.
The facility is conditional on a minimum equity raise of $15-million at the company’s initial public offering (IPO), planned on the Dar es Salaam Stock Exchange (DSE), in Tanzania.
Shanta is targeting a minimum equity offering of $20-million at the IPO.
The loan facility will be repaid over three years.
Shanta will use the IPO proceeds to fund activities at its Singida gold mine project, in Tanzania.
Since announcing the IPO in March, Shanta has received formal feedback on the IPO prospectus from the DSE, as well as the Tanzanian Capital Markets and Securities Authority.
Following the IPO, Shanta expects to retain at least 51% ownership of the Singida project and will remain its operator.
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