Shanta Gold flags possible changes to legal framework in Tanzania's resource sector

The East Africa-focused gold producer, developer and explorer with a market capitalisation of £37.33m noted recommended legislation changes to the legal framework governing the natural resources sector in Tanzania, which will be debated by the parliament in an extended parliamentary session.

Shanta, stated it would seek advice on the proposed changes and provide further updates as appropriate.

Shanta also noted approval of the finance act by that country's parliament, which would impose a 1% clearing fee on the value of all minerals exported from the country as of 1st July 2017.

The company has defined ore resources on the New Luika, Nkuluwisi and Singida projects in Tanzania and holds exploration licences over a number of additional properties in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 87,713 ounces in 2016.

The groups shares were down -9.30% to 4.88p at 16:15 BST