SHANTA Gold’s Singida Resources initial public offer (IPO) is awaiting technical agreement regarding transaction between two government authorities to start.
The gold miner wants to raise 30 million US dollars (some 7 0bn/-) to develop Singida mine through local public fund and documents are lodged to Capital Markets and Securi- ties Authority (CMSA).
Arch Financial and Investment Advisory Managing Di- rector, Iyen Nsemwa, said the IPO awaits CMSA and Tanza- nia Revenue Authority to agree on the technical issue before given an approval.
“We are waiting for the talk’s agreement on the tech- nical issue between TRA and CMSA... to get an okay,” Mr Nswema told ‘Daily News’ yesterday.
Arch Financial is the sponsoring broker of Singida IPO. Singida Resources will list the entire 30 million US dollar IPO at value of 500/-a share on DSE’s Enterprise Growth Market (EGM). Shanta will retain at least 51 percent ownership of Singida and will operate the project.
Yesterday Shanta also told investors that financing talks for the development of Singida are at an advanced stage and published an updated assessment of the reserves and resources at the Singida gold mining project.
It confirmed a JORC compliant reserve of 2 4 3 ,000 ounces of gold, with the mineralization grading 3 grams per tonne gold.
The company noted that more than 90 percent of the project’s contained gold reserve is located between surfaces to 12 0 metres, leaving further potential for additional reserves at depth.
Resources totaled 904 ,000 ounces of gold, with 11.8 million tonnes grading 2.28 grams.
That includes 484 ,000 ounces of measured and indi- cated resources, with 5.7 mln tonnes at 2 .66 grams per tonne.
“The Singida reserve allows the company to move forwards towards construction and first production at Singida, confident in the fact that we have a number of high-grade open pits,” Eric Zurrin, Shanta chief execu- tive said in a statement.
“Importantly, it is expected that this foundation will allow Singida to generate significant cash-flow to, amongst other things, pay for regional exploration which will, over time, illuminate the Project’s full potential.
”The Singida reserve sits within a substantial resource and is located on a 4 .9 km strike in a highly prospective green- stone belt.
The reserve represents just 2 6 percent of the existing total contained resources and is nearly all within only 120 meters from surface, highlighting the potential for reserve expansion.