Investors & Media
In the media
Tanzanian gold explorer joins AIM
Source: Mining Journal
Publication: Mining Journal
15 July 2005
SHARES in Shanta Gold Ltd began trading on London's AIM market this week, after the company successfully raised £3.5 million for its gold exploration properties in Tanzania.
Shanta placed 17.2 million ordinary shares, at £0.25/share, giving the company a market capitalisation of £15.6 million on listing. WM Ireland has been appointed nominated adviser and will also act as co-broker to Shanta along with Haywood Securities of Canada.
Since forming in 2001, Shanta has spent over US$4.5 million acquiring gold properties in Tanzania. Its principal focus is on the Mgusu and Simba Nguru projects, in the northern and central parts of Tanzania respectively, as well as three projects in the country's Musoma district.
A 741,000 oz gold resource has been established at Mgusu (127,000 oz in the indicated category and 614,000 oz inferred), and Shanta says its independent consultant SRK believes Simba Nguru to have the potential to host over 300,000 oz of gold. The Musoma district projects - Katario, Ikungu and Suguti - are within 25 km of one another. An inferred resource of 185,000 oz has been reported for Ikungu, and SRK believes Katario may hold over 300,000 oz of gold.
"Our core projects in Tanzania have potential for significant production against the backdrop of a strong gold price," said George Bennett, Shanta's chief executive.
"Our aim is to drive forward exploration, establish commercial viability of the projects, and be in a position to construct and commission a gold mine."