El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Shares in Shanta Gold (LON: SHG) fell as much as 13% on Monday after the East Africa-focused miner announced it had ended takeover negotiations with Shandong Gold (HKG: 1787) and Chaarat Gold (LON: CGH).
The company said the offers did not reflect the value of the company. They included a bid from Yintai Gold (SHE: 000975), which then withdrew it on November 2.
Shanta Gold’s stock fell on the news and were trading 11% lower at 9.6 pence mid-afternoon in London, leaving it with a market capitalization of £99.6 million ($116.9m).
The miner said it continues to believe in the strength of its business and portfolio potential, adding that it won’t accept an offer or deal structure that doesn’t deliver value for shareholders.
Shanta said it remains focused on optimizing and growing its portfolio to deliver long-term shareholder returns, with catalysts in 2023 including increasing production at the New Luika Gold Mine in Tanzania, delivering first gold pour at Singida, Tanzania, and achieving an annual production rate of 100,000 ounces a year. It is also focused on an expansion of resources at its West Kenya gold project.
“Going forward, we are on a strong and stable footing with a series of key milestones scheduled for 2023,” Chief Executive Eric Zurrin said in a statement.
The bidders had until November 15 to either make an offer or walk away under U.K. Takeover Panel rules.
