LONDON (ShareCast) - (Sharecast News) - East Africa-focussed gold producer Shanta Gold has received irrevocable undertakings from holders of its outstanding unsecured subordinated convertible loan notes due in April, representing 77.14% by nominal value, to vote to extend the maturity date by one year, it announced on Thursday.

The AIM-traded firm said the restructuring would also allow it to redeem the loan notes earlier in whole or in part, if it so chooses, by notice to the holders.

It explained that the arrangements remained subject to the approval of loan note holders holding at least 75% in nominal value of the notes outstanding, with irrevocable undertakings received from 77.14% of holders to vote in favour of the arrangements.

Written resolutions would be sent to the holders shortly which, if passed by the requisite majority, would enable the company to implement the arrangements.

"Management and the Board took the decision to defer the repayment of convertible loan notes in order to maximise financial flexibility ahead of making the payment to Barrick for the West Kenya acquisition announced last week," said chief executive officer Eric Zurrin.

"Today's announced convertibles restructuring allows Shanta the option to repay the loan note holders earlier than 12 months, if we so choose."

At 1154 GMT, shares in Shanta Gold were up 0.52% at 12.46p.

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