Standard Bank facilitates ETC Holdings buyout and privatisation of Shanta Gold

Saturn Resources is a wholly owned subsidiary of the diversified investment group ETC Holdings domiciled in Mauritius. Shanta Gold operates 2 flagship assets in Tanzania—New Luika and Singida—and owns the West Kenya exploration project.

The bank acted in its capacity as joint mandated lead arranger in the transaction and provided a $ 150m bridging loan facility, which allowed Saturn Resources to buy out existing Shanta Gold shareholders before delisting from the London Stock Exchange. Additionally, the bank leveraged its global markets business to provide a foreign exchange hedging facility to manage the US dollar / British pound volatility.

The mining sector in Tanzania makes up 9% of the GDP, with gold contributing to 21% of its total exports. Active in exploration and development, Shanta Gold aims to expand its resource base and increase production. The privatisation of the company will allow promoters, management and employees to deliver on the business strategy and maximise the potential return on all stakeholders including the general public.

“The transaction has demonstrated Standard Bank’s 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,” said Tumi Mmolawa, Investment Bank, Mining and Metals at Standard Bank. “The deal also indicated our balance sheet capability, as well our growing relationship with Shanta Gold and the ETC Group.”

As Africa’s largest bank by assets, Standard Bank is committed to our clients and supporting their growth ambitions. We will continue to leverage our deep mining sector knowledge, footprint across Africa and major international financial centres, multifaceted teams and on-the-ground presence to unlock Africa's potential for sustainable economic growth through the mining sector.