REG - Shanta Gold Limited - Update on Recent Approaches and Outlook

Shanta GoldAnnouncement

14/11/2022 07:45

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RNS Number : 2781G  Shanta Gold Limited  14 November 2022

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INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE
A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR

FOR IMMEDIATE RELEASE

 

14 November 2022

Shanta Gold Limited ("Shanta" or the "Company")

 Update on Recent Approaches and Outlook

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)
 Liberum Capital Limited (Joint Financial Adviser, NOMAD and Broker)    +44 (0)20 3100 2000
 Corporate Broking

 Scott Mathieson / Ed Thomas / Nikhil Varghese / Lucas Bamber

 M&A

 Tim Medak / Mark Harrison

 Treadstone Resource Partners (Joint Financial Adviser)                +61 (0) 2 9210 5600
 Ross King / Adam Bill

 FTI Consulting (Media enquiries)                                      + 44 (0) 203 727 1000
 Sara Powell
 Nick Hennis

Liberum Capital Limited (Joint Financial Adviser, NOMAD and Broker)

 +44 (0)20 3100 2000

Corporate Broking

Scott Mathieson / Ed Thomas / Nikhil Varghese / Lucas Bamber

M&A

Tim Medak / Mark Harrison

 

 

 

Treadstone Resource Partners (Joint Financial Adviser)

+61 (0) 2 9210 5600

Ross King / Adam Bill

 

FTI Consulting (Media enquiries)

+ 44 (0) 203 727 1000

Sara Powell

Nick Hennis

Rule 26.1 disclosure

In accordance with Rule 26.1 of the Code, a copy of this announcement will be
available (subject to certain restrictions relating to persons resident in
restricted jurisdictions) at www.shantagold.com/investors/takeover-offer/
(http://www.shantagold.com/investors/takeover-offer/) by no later than 12 noon
(London time) on the business day following the date of this announcement. The
content of the website referred to in this announcement is not incorporated
into and does not form part of this announcement.

 

Important information

 

This announcement is not intended to, and does not, constitute, represent or
form part of any offer, invitation or solicitation of an offer to purchase,
otherwise acquire, subscribe for, sell or otherwise dispose of any securities
or the solicitation of any vote or approval in any jurisdiction whether
pursuant to this announcement or otherwise.

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