Memery Crystal advises Shanta Gold on transformative acquisition, fundraising and debt deal

The ECM team acted on a placing of new shares to raise $14million to provide extra funds to their revised mine plans of an increased gold outage between 2017 and 2020, integrate Helio’s assets into the New Luika Gold Mine and seek out opportunities in the surrounding area.

Contemporaneously, the M&A team advised on the English law aspects of the conditional acquisition of Helio, a Canadian listed company with adjacent licences to Shanta’s New Luika Gold Mine.

Finally, the banking team has advised the company on restructuring its debt by:

1. buying back its outstanding convertible loan notes through a subsidiary of it;
2. restructuring the company’s Investec loan facility.

The debt re-structuring is subject to formal documentation being entered into with Investec and the satisfaction of various conditions.

Nick Davis commented: “Working with Shanta on these contemporaneous multi-jurisdictional transactions has involved the wide skill set of our ECM, M&A and banking offering. As always, it has been a pleasure to assist with these exciting transactions and we look forward to continuing our relationship with Shanta at this exciting juncture of the company’s development.”

Editors notes:

• Shanta Gold is an AIM quoted company that operates in Tanzania as an emerging gold producer which Memery Crystal listed on AIM in 2005.
• The Memery Crystal team comprised CEO Nick Davis, corporate director Melanie Talbot, corporate solicitor George Pendarves and corporate and debt finance partner Rumit Nanji.

Memery Crystal is a specialist international law firm based in London with a well-established history of acting for clients in the corporate sector. As an industry-leading advisory on IPO’s and M&A, Memery Crystal have again been included in “Band 1” for AIM in the most recent edition of the Chambers UK legal directory. Furthermore, the corporate team is also ranked in “Band 2” for M&A in Chambers UK.