Combined with existing cash of $3m and expected fourth quarter gold sales of $9m, the proceeds from the placing will help finalise operating costs and debt repayment surrounding New Luika.
Operationally, Shanta is working on resolving issues at its flagship asset. Initial production at New Luika, started at the end of August, was lower than expected as a result of reduced crushing capacity.
Overall, Shanta said that gold output to 14 October came in at 570 ounces, compared to 199 ounces for the whole of September.
Meanwhile, the explorer yesterday announced a management shake-up. Jonathan Leslie has been appointed as strategic adviser to the board, while mining corporate financier Luke Leslie has been appointed non-executive director. Additionally, technical director and former chief executive Gareth Taylor has stepped down, while executive chairman Walton Imrie will step down when a new chairman candidate has been found.