Shanta Gold, the East Africa-focused gold producer, developer and explorer, has completed a finance agreement with Sandvik Mining and Construction OY. The approximate €2.1 million ($2.3 million) financing will be used to purchase underground mobile equipment and is repayable quarterly in two tranches over respective 36 month periods. The first tranche will be repayable from June 2017 and the second from October 2017. Both tranches will carry a fixed interest cost of 6.5%.

The equipment will arrive in Tanzania in stages from May 2017. This purchase is part of Shanta’s capital program initially outlined in the 2015 Base Case Mine Plan for its flagship asset, the New Luika gold mine located in the Lupa Goldfield, in southwest Tanzania.

Toby Bradbury, Shana CEO, commented: “This is our second equipment financing with Sandvik over the last 15 months which is an important pillar of our financing plan for the underground capital development programme at our flagship asset, the New Luika gold mine.”