Modern Mining May 2020

GOLD

Shanta solidifies operating presence in East Africa

AIM-quoted Shanta Gold’s acquisition of Barrick’s Kenya assets during the first quarter of this year transforms the East Africa-focused gold producer into a multi-asset and geographically diversified company with a portfolio of low-cost gold mines, and the potential to become a significant producer. This, CEO Eric Zurrin tells Munesu Shoko , solidifies Shanta’s position in the East African gold space with realisable growth prospects and a high-asset quality across three attractive gold projects.

S hanta Gold announced the acquisi- tion of Barrick Gold’s Kenya assets in February this year. The acquisi- tion cost for 100% of the outstanding share capital of Acacia Exploration Kenya Limited (AEKL), Barrick’s subsidiary which owns the West Kenya Project, is US$7-million cash and US$7,5- million in Shanta Gold shares (payable on completion of transaction), as well as 2% life of mine net smelter return royalty across the current seven prospecting licenses contained in the West Kenya Project (pay- able on actual gold production in future). Speaking to Modern Mining , CEO Eric Zurrin says the West Kenya acquisition is significant for Shanta because it has potential to be a long-life, high-grade producing gold mine. “It is believed to be one of the highest grading +1-million ounces (Moz) gold deposits in Africa and it solidifies Shanta’s position in the East African gold mining space with realisable growth prospects and a high-asset quality across

Eric Zurrin, CEO of Shanta Gold.

three attractive gold projects,” he says. “In addi- tion, it also expands Shanta’s operating presence in East Africa with a diversified portfolio of exceptional assets, delivering long-term growth.” The project increases Shanta’s high-quality gold resource inventory to over 3 Moz contained gold with the prospect of future growth. Commenting on the company’s focus on East Africa, Zurrin says Shanta has successfully operated in the region for close to 20 years and this acqui- sition is a natural extension in terms of geographic footprint, skillset, size and mining method. He says there are also complementary language and legal systems between Tanzania, where the company owns its flagship asset, the New Luika Gold Mine, and Kenya, based on English law. An

Shanta’s New Luika achieved its first commercial production in 2012.

16  MODERN MINING  May 2020