Shanta Gold will use the €2.1 million to purchase underground mobile equipment and is repayable quarterly in two tranches over respective 36 month periods.
The first tranche will be repayable from June 2017 and the second from October 2017. Both tranches will carry a fixed interest cost of 6.5%.
The equipment will arrive in Tanzania in stages from May 2017 onwards.
This purchase is part of Shanta Gold’s capital programme initially outlined in the 2015 Base Case Mine Plan for its flagship asset, the New Luika gold mine located in the Lupa Goldfield, in southwest Tanzania.
“This is our second equipment financing with Sandvik over the last 15 months that is an important pillar of our financing plan for the underground capital development programme at our flagship asset, the New Luika gold mine,” says Shanta Gold CEO, Toby Bradbury.
Earlier this year Shanta Gold intersected encouraging mineralisation at the New Luika gold mine.
The mineralisation is from a reverse circulation drilling programme at the Nkuluwisi mineralised target, located approximately 12 km north-west of New Luika’s central processing hub.
A total of 44 RC drill holes comprising 5 833 m of drilling were completed at Nkuluwisi, identifying mineralisation down to vertical depths of approximately 120 m below surface.
Exploration to date has covered a strike length of about 900 m and significant portions of the regionally prominent Nkuluwisi Shear Zone remain untested and exploration work is on-going.