Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Tanzania-focused Shanta Gold is planning to raise $35 million to be put towards its New Luika Gold Mine.
London-listed Shanta Gold (AIM:SHG.L) today announced the fundraising will consist of US$25 million in 5-year notes and $10 million through an equity share placement.
Proceeds from the placements will be used to fund capital requirements to bring the New Luika mine into production by the third quarter of this year.
“The company’s working capital requirements have increased as a result of the extended period of mining without revenues from gold production as well as the stockpiling of important chemicals to avoid possible disruptions once gold production commences,” the company states.
Ore has been stockpiled since mining began in November of last year.
