Shanta Gold says due diligence for new credit facility still ongoing

Shanta Gold reported on Wednesday that Investec Bank's due diligence in relation to a bigger credit facility was still ongoing as it continued evaluating legislative changes in Tanzania.

Linked to the above, Shanta said the repurchase of the outstanding unsecured convertible loan notes, as announced on 20 June, was conditional on approval of the new $50m facility which would replace a previous one for $40m.

However, the company's authority to repurchase those notes was set to expire on 20 October.

As of 30 September, Shanta's total liquidity stood at $13.6m inclusive of a cash balance of $8m as well as access to the undrawn unrestricted Exim Bank facility totalling of $5.6m out of $7.5m, the company said in a statement.

A further update on the debt restructuring would be provided to shareholders and the holders of the loan notes by 31 March 2018, Shanta said.