Management Appointments

RNS Number : 7908P

Shanta Gold Limited

05 September 2017

 

5 September 2017

Shanta Gold Limited

("Shanta Gold", "Shanta" or the "Company")

Management Appointments

Shanta Gold (AIM: SHG), the East Africa-focused gold producer, developer and explorer, is pleased to announce the following changes to the senior management team.

Highlights

·     Scott Yelland promoted to Chief Operating Officer ("COO");

·     Luke Leslie appointed as Interim Chief Financial Officer ("CFO"), effective 11 September 2017;

·     Honest Mrema promoted to General Manager ("GM") of New Luika Gold Mine ("NLGM");

·     Senior management of the Company ("Executive Committee") unanimously endorse an average 15% reduction in gross cash salaries, which is in addition to the shares for cash fee sacrifice that the Board of Directors announced in June 2017;

·     The Executive Committee has agreed to discretionary pay in the form of Shanta Gold shares, previously cash, to increase alignment with shareholders; and

·     The Company's Executive Committee now includes a higher representation of senior Tanzanian management with strong government relations.

The above changes ensure continuity in delivering the operational consistency and improvements at NLGM that have been achieved since 2015 while solidifying the financial and commercial capability of the Company. Shanta is now better positioned with highly qualified Tanzanian individuals in senior management positions assisting with in-country relations across all levels of government. The changes to the remuneration structure reflect the Company's ongoing initiatives to reduce fixed costs while realigning incentives for senior management to drive shareholder value.

Eric Zurrin, Chief Executive Officer, commented:

"On behalf of the Board, I am delighted to announce these changes to Shanta's senior management. Scott's proven success at NLGM and his expanded role across our portfolio of assets ensures the Company has strong technical leadership and oversight for the future. An increased focus on maximising the potential of Singida is a priority for the Company and Scott's role as COO alongside Philbert Rweyemamu's leadership at Singida is an exciting combination.

"Luke's background in operational improvement, strategy and M&A will improve the Company's capital investment decision making process, better manage the Company's cost base and, most importantly, prioritise the delivery of shareholder returns.

"Already an integral part of our senior management team, Honest's promotion to GM of NLGM will be seamless. He will play a more central role in managing the operations of the high quality NLGM while strengthening community relationships in Songwe and across Tanzania.

"I have been working closely with Philbert Rweyemamu and Calvin Mlingi, our Head of Country Affairs, since 2016, both are members of our Executive Committee and an important part of building strong relations in country with the Tanzanian government.

"Lastly, I welcome the commitment of the Executive Committee members towards cost controls and increasing their alignment with our shareholders, through a positive change in the Company's remuneration structure."

Appendix − Background

Scott Yelland (MSc CEng FIMMM) has been promoted to the position of COO with technical oversight of the Company's assets including exploration. As COO, Scott will be responsible for the continued ramp-up of the underground mine at NLGM and the development of the Singida project which is a key contributor to the next stage of Shanta's growth. Scott has an intimate understanding of the Company's assets having been a senior technical leader at Shanta including GM of NLGM for the past two and a half years. Scott is a mining engineer with 35 years' experience having previously worked with Rio Tinto, Kinross and Ashanti Goldfields and was formerly the COO of Berkeley Resources and Highland Gold. Scott's appointment is a non-board position.

Luke Leslie has been appointed as Interim CFO, effective 11 September 2017, having served as a non-executive director of the Company since 2012. Luke has been a member of the Company's audit committee since 2013 and was previously Chairman of the Audit Committee of Canadian listed exploration company Kincora Copper, where he still serves as a Non-Executive Director. Luke was previously Co-Head of Trafigura-Origo, a member of UBS Investment Bank's Corporate Finance team and a management consultant with Accenture, where he specialised in post-acquisition integration and cost reduction strategies. Luke will remain as a director of Shanta Gold Limited and will step down from his membership on the Audit and Remuneration Committees effective 11 September 2017.

Honest Mrema has been promoted to GM of NLGM, having joined Shanta in 2015 as the Technical Services Manager before being promoted to Acting GM, in a role where he has been integral to the development of NLGM. Honest is a Tanzanian national and mining engineer with 20 years' experience including posts in Zambia, Mali and Laos. Honest has previously worked for Anglo American, Barrick Gold, Placer Dome Mining, Pan Australian Resources, Resolute Mining and Endeavour Mining. Honest will also join the Executive Committee.

The Executive Committee of the Company now consists of Eric Zurrin, Scott Yelland, Luke Leslie, and Honest Mrema, as well as Philbert Rweyemamu (GM of Singida) and Calvin Mlingi (Head of Country Affairs). Honest, Philbert and Calvin are Tanzanian nationals with a track record of operational delivery and who are well positioned to support management with in-country government relations.

The Executive Committee members have agreed to a collective decrease of 15% of gross basic cash salaries and committed to receiving all discretionary remuneration in the form of Shanta Gold common shares, as opposed to cash.

Enquiries:

Shanta Gold Limited
Eric Zurrin (CEO)	[phone]
Nominated Adviser and Broker
Peel Hunt LLP
Matthew Armitt / Ross Allister / Chris Burrows	[phone]
Financial Public Relations
Tavistock
Jos Simson / Emily Fenton / Barnaby Hayward	+44 (0)  20 7920 3150

About Shanta Gold

Shanta Gold is an East Africa-focused gold producer, developer and explorer. It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licences over a number of additional properties in the country. Shanta's flagship New Luika Gold Mine commenced production in 2012 and produced 87,714 ounces in 2016. The Company has been admitted to trading on London's AIM and has approximately 766 million shares in issue. For further information please visit: www.shantagold.com.

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