In Friday’s brief statement, the company added that it was working with its advisors on final allocations and would provide a further update in due course.
Shanta announced after the market close on Thursday that it was proposing to raise roughly £31mln by way of a placing and a direct subscription of shares priced at 16.5p each.
In Friday morning trading, Shanta Gold shares were 3,25% lower at 17.13p.
In Thursday’s statement, the East Africa-focused gold producer, developer and explorer, said all of its directors had indicated an intention to participate in the share subscription, up to an aggregate amount of about £270,000.
The funds raised will pay for infill drilling, expansion drilling, technical studies and working capital over the next 36 months at the company’s West Kenya Project, it added.
“Shanta has an outstanding portfolio of gold assets with exceptional growth prospects. The proposed fundraising will allow the company to accelerate exploration at West Kenya which is a new gold district hosting what is believed to be the highest grade underground gold deposit in Africa,” Eric Zurrin, the chief executive officer of Shanta commented.
“This financing enables exploration work to commence and accelerate the process of demonstrating the potential significant value of the West Kenya Project. This financing is in the best interests of all shareholders to realise value across our entire portfolio,” he added.
— Adds over-subscription statement, share price —