LONDON, UK: Saturn Resources Ltd (“Bidco”), a subsidiary of ETC Holdings, has agreed to buy out Shanta Gold Limited (“Shanta”), a gold mining company operating in East Africa, for 13.5 pence per share in cash.

Badal Patel, CFO of Bidco, commented: “Bidco believes that the recommendations from ISS and Glass Lewis to vote in favour of the Acquisition are a further endorsement of the opportunity the Acquisition represents for Shanta Shareholders.

These recommendations are in addition to the support of the Acquisition received by Bidco from Shanta’s two largest shareholders, via an irrevocable undertaking and a letter of intent, and from those Independent Shanta Directors who are shareholders, representing, in aggregate, over 18% of Shanta Shares in issue.”

The deal, which values Shanta at approximately £141.95 million, has been recommended by the Shanta Board and endorsed by two leading proxy advisory firms, ISS and Glass Lewis.

Shanta shareholders will also receive an interim dividend of up to 0.15 pence per share, subject to the approval of the scheme of arrangement under the Companies (Guernsey) Law, 2008.

The scheme requires the consent of the majority of the voting Shanta shareholders at the Court Meeting and the General Meeting, which are expected to be held in early 2024.

Bidco, which already owns 29.9% of Shanta, said the acquisition would create a diversified gold producer with a strong portfolio of assets in Africa and Asia.

Shanta operates the New Luika Gold Mine in Tanzania and the Singida Gold Project in Tanzania. It also has exploration licenses in Kenya and Botswana.

Bidco is a wholly-owned subsidiary of ETC Holdings (Mauritius) Limited, a private company that invests in natural resources and energy sectors.

ETC Holdings offers to acquire Shanta Gold Limited for $141.95 million