Shanta Gold Limited SHANTA GOLD RESPONSE TO HELIO RESOURCE CORP (0026Q)

TIDMSHG

RNS Number : 0026Q

Shanta Gold Limited

06 September 2017

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR PUBLICATION, RELEASE OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF SUCH JURISDICTIONS.

FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW ORDINARY SHARES OF SHANTA GOLD LIMITED IN ANY JURISIDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

6 September 2017

SHANTA GOLD LIMITED

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

SHANTA GOLD RESPONSE TO HELIO RESOURCE CORP

Shanta Gold (AIM: SHG) ("Shanta") has reviewed the news release of Helio Resource Corp. ("Helio") (TSXV: HRC) issued today in which Helio has purported to reject Shanta's termination of the arrangement agreement dated as of 19 June 2017 (Vancouver time) (the "Arrangement Agreement") with Helio. Shanta maintains that it has validly terminated the Arrangement Agreement as a result of the potential impact on Helio of the bills signed into law in Tanzania on 10 July 2017, after having taken professional advice and given due consideration to its decision. Shanta's position, and advice, remains that it had clear and compelling rights to terminate the Arrangement Agreement and that the Arrangement Agreement was validly terminated.

Enquiries:

Shanta Gold Limited

Eric Zurrin (CEO) [phone]

Luke Leslie (CFO)

Nominated Adviser and Broker

Peel Hunt LLP [phone]

Matthew Armitt / Ross Allister / Chris Burrows

Financial Public Relations

Tavistock [phone]

Jos Simson / Emily Fenton / Barney Hayward

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, Nkuluwisi 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 87,713 ounces in 2016. The Company is admitted to trading on London's AIM and has approximately 766 million shares in issue.

For further information please visit: www.Shantagold.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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September 06, 2017 08:31 ET (12:31 GMT)