(Ecofin Agency) - East-Africa focused gold producer, Shanta Gold Ltd, received from Bank M Tanzania $9.1 million to build a power station at its New Luika gold mine. The project is part of an investment program of the company, outlined in the base case mine plan which it announced on September 29, 2015.

“This power station project is a cornerstone capital item for the successful realisation of our mine plan for the New Luika gold mine. The transition from a power leasing arrangement to an owned power station has compelling strategic and financial benefits including a significant drop in per kilowatt hour power costs,” said Shanta Gold’s CEO, Toby Bradbury.

“The plant’s arrival in Q1, 2017 is timed to the commencement of underground production in Q2, 2017 and provides a longer term power facility to cater for an extended mine life as additional resources are brought in to the mine plan”, he added.

Shanta Gold Ltd owns exploration licences covering a total of 1,300 km2, in Tanzania, and holds a 100% stake in the New Luika project which has a potential of 1.57 million tons of gold at a grade of 6.5g/t over six years.

Louis-Nino Kansoun