Stanbic Bank Tanzania, leveraging through Standard Bank Group, Africa’s largest bank by assets, has successfully provided a bridging facility loan which has enabled Saturn Resources to acquire and de-list Shanta Gold from the London Stock Exchange.

Saturn Resources is a wholly owned subsidiary of the diversified investment group ETC Holdings domiciled in Mauritius while Shanta is an East Africa-focused gold producer operating two flagship assets in Tanzania.

Standard Bank was appointed as joint mandated lead arranger in the $150m bridging loan facility, which allowed Saturn to buy out existing Shanta Gold shareholders before de-listing the gold producer from the London Stock Exchange. 

The privatisation of Shanta Gold is set to allow its promoters, management, and employees to deliver on the business strategy and maximise the potential return on all stakeholders.

“We have demonstrated commitment to supporting our key clients in funding their growth ambitions,” said Elibariki Ndossi, Head of Investment Banking at Stanbic Bank Tanzania.

“The Standard Bank Group’s deep mining sector knowledge, footprint across Africa and major international financial centres, multifaceted teams and on the ground, presence facilitated the quick structuring and execution of the deal,” shared Ndossi.

Stanbic Bank through the Standard Bank Group also leveraged its global markets business to provide foreign exchange hedging facility to manage the US dollar/British pound volatility.

Africa’s largest bank by assets has a footprint in 20 countries on the continent, to which it has committed to develop in an inclusive and sustainable way while managing risks.

The mining sector is a vital foreign exchange source for Tanzania, contributing about 9 percent of its GDP. 

“Our deep mining sector knowledge, footprint across Africa and major international financial centres, multifaceted teams and on ground presence facilitated quick structuring and execution of the deal,” Ndossi added.

“The transaction has demonstrated our ability to leverage across regional balance sheets (Isle of Man, Tanzania and Mauritius) and product capabilities across debt solutions and global markets to combine insights and ensure a bespoke and market relevant solution is delivered within a short timeline. The deal also indicated our balance sheet capability, as well our growing relationship with Shanta Gold and the ETC Group,” said Tumi Mmolawa, Investment Bank - Mining and Metals, Standard Bank.

Shanta Gold is an East Africa-focused gold producer, developer and explorer. 

Shanta is a growth-driven, people-focused, and responsible business, motivated by a commitment to deliver long-term value for all stakeholders.  

Alongside its Tanzanian assets, the New Luika Gold Mine (“New Luika”) and the Singida Gold Project (“Singida”), Shanta also owns the West Kenya Project in Kenya with defined high-grade resources and prospecting licences.

The Singida Gold Mine is located in the Ikungi district, Singida region of central Tanzania, approximately 620km West-Northwest of Dar es Salaam.

Singida is an Open Pit mining operation and achieved commercial production in 2023.

The New Luika Gold Mine is based in the Songwe District of Southwestern Tanzania approximately 700 km South-West of Dar es Salaam  commenced its production in 2012. 

New Luika is an Open Pit and Underground mining operation with a reputation as one of the safest gold mining operations of its peers.