Shanta Gold Ltd. (SHG)

Sector:

Mining

Index:

FTSE AIM All-Share

9.36p
   
  • Change Today:
      0.46p
  • 52 Week High: 12.85
  • 52 Week Low: 6.10
  • Currency: UK Pounds
  • Shares Issued: 793.93m
  • Volume: 1,545,629
  • Market Cap: £74.31m
  • RiskGrade: 557

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Shanta Gold to acquire Kenya assets from Barrick Gold

By Josh White

Date: Monday 10 Feb 2020

LONDON (ShareCast) - (Sharecast News) - East Africa-focussed gold producer Shanta Gold has entered into a definitive agreement under which it will purchase 100% of the shares of Acacia Exploration Kenya (AEKL) from two subsidiaries of Barrick Gold Corporation.
The AIM-traded firm said AEKL's primary asset is a 100% participating interest in licences held by Afriore, which includes an existing high-grade resource.

It highlighted a NI-43101 compliant inferred mineral resource estimate of 1,182,000 ounces of gold, grading at 12.6 grams per tonne, which was believed to be one of the highest grading gold deposits of at least one million ounces in Africa.

The project covers 1,161 square kilometres within the Lake Victoria greenstone gold field in north west Tanzania and south west Kenya, which consists of global Tier 1 assets, including North Mara and the Geita Gold Mine.

It said the project required in-fill drilling and technical studies before a construction decision was made.

Around $55m had been invested in exploration activities across west Kenya since 2010 by Acacia Mining and previous owners.

Exploration drilling of 221,000 metres, around 80,000 soil samples, and regional intellectual property had identified "attractive" exploration targets, the board said.

It pointed out historic gold production of around 259,000 ounces at 12.3 grams per tonne from the Rosterman mine, which is included in the licence area of the West Kenya Project.

The fully-financed purchase price totalled $7m in cash, $7.5m in shares in Shanta Gold issued to Barrick, and a 2% life-of-mine net smelter return royalty over the project.

Barrick would become Shanta Gold's fifth largest shareholder with a 6.4% interest as a result.

"The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects," said chief executive officer Eric Zurrin.

"Shanta has successfully operated in East Africa for nearly 20 years and this acquisition is a natural extension in terms of geographic footprint, skillset, size and mining method.

"One of Shanta's competitive advantages is being able to operate long hole open stoping operations more efficiently than its peers which lends itself well to the advancement of the West Kenya Project."

At 1459 GMT, shares in Shanta Gold were up 1.69% at 11.21p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

SHG Market Data

Currency UK Pounds
Share Price 9.36p
Change Today 0.46p
% Change 5.17 %
52 Week High 12.85
52 Week Low 6.10
Volume 1,545,629
Shares Issued 793.93m
Market Cap £74.31m
RiskGrade 557

SHG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
35.95% above the market average35.95% above the market average35.95% above the market average35.95% above the market average35.95% above the market average
3.57% above the sector average3.57% above the sector average3.57% above the sector average3.57% above the sector average3.57% above the sector average
Price Trend
95.36% above the market average95.36% above the market average95.36% above the market average95.36% above the market average95.36% above the market average
85.37% above the sector average85.37% above the sector average85.37% above the sector average85.37% above the sector average85.37% above the sector average
Income Not Available
Growth
51.88% above the market average51.88% above the market average51.88% above the market average51.88% above the market average51.88% above the market average
Sector averageSector averageSector averageSector averageSector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

SHG Dividends

No dividends found

Trades for 03-Apr-2020

Time Volume / Share Price
16:35 10,000 @ 9.36p
16:08 4,264 @ 9.10p
15:17 100,000 @ 9.00p
15:17 11,683 @ 8.75p
15:16 199,999 @ 8.75p

SHG Key Personnel

CFO Luke Leslie
CEO Eric Zurrin

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