Shanta Gold advances on strong gold production update

15th Apr 2013 08:09

Shares in AIM-listed Shanta Gold advanced on Monday morning after the East Africa focused gold producing company published its unaudited final results for the year ended December 31st showing strong gold production levels in the final quarter.The company reported that the Bauhinia Creek pit commenced, with ore being placed on stockpile and said that a plant had been successfully built and commissioned in the year, producing 5,748 ounces (oz) gold in the fourth quarter of 2012.The company further reported that $50m equity and $60m debt capital had been raised, of which $18m was repaid in the year. Post-period highlights included the successful ramp up of New Luika processing plant to deliver an additional 11,888oz gold in the first quarter of 2013 and further upgrades identified in the crushing circuit with gold room expected to enable the company to reach its production target for 2013.A further $30m of debt capital was raised and drawn-down in January 2013, the company disclosed. Walton Imrie, Chairman of Shanta Gold, said: "2012 has been a transitional year for Shanta Gold and these results reflect the investment of funds raised by the company into the New Luika Gold Mine."I believe New Luika will prove to be the cornerstone mining and processing operation for a successful gold producing company." Shanta Gold's share price was up 0.71% to 17.75p at 08:53 on Monday following an early morning high of 17.85p.MF