AIM-quoted Shanta Gold has delivered notice to Helio Resource Corp. of its termination of an arrangement agreement dated as of 19 June 2017 with Helio.

This action by Shanta Gold is a result of the potential impact on Helio of the bills signed into law in Tanzania on 10 July 2017.

Accordingly, having taken professional advice and upon due consideration, the company will not be acquiring all of the issued and outstanding common shares of Helio as previously announced.

The company intended to acquire Helio Resources’ SMP project in Tanzania which is immediately adjacent to Shanta Gold’s operating New Luika gold mine (NLGM).

Helio Resources’ project consists of an NI 43-101 compliant gold resource consisting of 635k gold oz at an average grade of 2.4g/t. All of these resources are located within 20 km of the Shanta Gold NLGM processing plant.

“The inclusion of the Helio Resources into Shanta Gold’s portfolio strengthens the opportunity to deliver an expansion option for the NLGM and to also potentially extend mine life,” stated Shanta Gold CEO, Dr. Toby Bradbury in June.

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