Nedbank Corporate and Investment Banking (CIB) Mining and Critical Minerals (MCM) has successfully closed a US$150 million term loan facility to support ETC Holdings' (ETC) acquisition of 100% of Shanta Gold PLC.

With 2 operating gold mines in Tanzania producing over 100 000 ounces annually, Shanta Gold represents a strategic gold mine investment that strengthens ETC's footprint in East Africa and marks a bold move into the gold mining sector.

Nedbank CIB's role in structuring the loan

Nedbank CIB played a pivotal role as co-Mandated Lead Arranger, initially structuring a US$150 million bridge loan to provide certainty for ETC's fully funded offer. Following the acquisition and delisting of Shanta Gold from the London Stock Exchange AIM board, our MCM team jointly structured and arranged a 4-year term loan facility with recourse to the operating mines. This is structured mining finance at its best – tailored, strategic, and impactful.

This transaction is a milestone for mining in Tanzania. It demonstrates how innovative mining finance solutions can unlock new opportunities for diversified conglomerates like ETC. By entering the mining sector, ETC is expanding its portfolio and contributing to the growth and sustainability of resource finance across the continent.

'This transaction showcases our ability to deliver tailored funding solutions that align with our clients' strategic ambitions. By unlocking value in East Africa's mining sector, we're not just financing a deal, we're enabling long-term growth and diversification for ETC,' reflects Tshepo Pitse, Principal of Mining and Critical Minerals at Nedbank CIB.

ETC's strategic expansion into East Africa

ETC's move into gold mining is a strategic leap aligned with its broader growth ambitions. Operating across 5 continents and in 32 African countries, ETC is a strategic client of our Agricultural Commodities team. This acquisition allows ETC to diversify its operations and deepen its presence in East Africa, an increasingly attractive region for mining investments.

The term loan facility is structured with recourse to Shanta Gold's operating mines, ensuring robust asset backing. It replaces the initial bridge loan and provides long-term funding certainty. This facility exemplifies our expertise in mining finance and our ability to deliver bespoke solutions that support mergers and acquisitions in the mining sector.

Gold price protection: Ensuring cash flow stability

To safeguard ETC's investment and ensure stable debt repayment, our Markets team collaborated with the MCM team to structure a gold commodity price protection programme. This innovative solution stabilises cash flows from the mines, reinforcing our role as financial adviser in helping clients manage risk and optimise returns.

Tanzania's mining sector: A growth opportunity

Tanzania continues to emerge as a key player in African mining. With rich mineral resources and a supportive regulatory environment, the country offers compelling opportunities for gold mine investment.

This deal underscores our commitment to supporting mining in Africa and driving sustainable development in the region.

Profiling the experts behind the deal

This transaction showcases the depth and quality of our people. The Nedbank CIB team led the deal with precision and insight, exemplifying the calibre of expertise that defines us. Their cross-functional collaboration delivered a seamless solution that met ETC's strategic objectives.

'We approached this transaction with a clear focus on structuring for certainty and resilience. The combination of bridge loan agility and long-term mining finance demonstrates how we bring precision and innovation to complex mergers and acquisitions,' explains Matthew Stretch, Principal of Mining and Critical Minerals at Nedbank CIB.

Bridge loans play a critical role in mergers and acquisitions by providing immediate funding certainty. In this case, our bridge loan enabled ETC to execute its acquisition swiftly and confidently. It's a prime example of how structured finance can accelerate deal-making and unlock value.

Nedbank CIB: Africa's leading mining financier

We are proud to be the go-to African financial institution for mining finance solutions. This deal reinforces our leadership and our ability to deliver innovative, client-centric solutions. As Africa's leading mining financier, we remain committed to powering growth, diversification, and transformation across the continent.

'Collaborating across teams to deliver this facility was a powerful example of what Nedbank CIB does best – bringing deep sector expertise and market insight together to support transformative gold mine investments in Africa,' notes Mayuri Savary, Senior Associate of Mining and Critical Minerals at Nedbank CIB.