StockMarketWire.com - Shanta Gold has received $10.0m financing from Exim Bank (Tanzania) Ltd (EXIM) following the commissioning in March 2017 of its 7.5 Mega Watts (MW) Power Station at the New Luika Gold Mine in Tanzania.
CEO Toby Bradbury said this power station has proven a great success for the New Luika Gold Mine.
"It is now delivering reliable power with a significant drop in per kilowatt hour power costs," he said.
In 2016, Shanta decided to pay the capital costs of the power station out of cash flow in anticipation of improved financing terms, which it has now realised with the Exim term loan.
"The power plant's commissioning in Q1 2017 will serve NLGM for many years and deliver the increased power required to support the new underground operation that remains on schedule to deliver first stope ore this quarter.
"As noted in Shanta's recent quarterly update, the Company continues to defer non-essential expenditure, while it completes the development of the underground operation, due to the large sum, now outstanding, in VAT refunds."
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