Placing of shares

Scotgold raises £3m to double Loch Lomond output

Richard Gray

Richard Gray: ‘exciting few weeks ahead’ (pic: Terry Murden)

Scotgold Resources, the gold exploration company, has raised £3 million from a placing of shares to accelerate plans to double production at its Loch Lomond mine.

Output of ore will be stepped up to 72,000 tonnes from the Cononish Gold & Silver Mine which is on course to become Scotland’s first commercial gold mine by 30 November.

The board believes it could increase mineable ounces at the Cononish mine and also support potential new mines at the site.

The placing of 2.7m shares at a price of 110p per share will also be used to increase exploration in Grampian.

SP Angel Corporate Finance acted as sole broker to the issue.

Phase 2 production will commence by May 2022 – 11 months earlier than previously scheduled and 17 months after the initial gold pour next month.

Based on gold and silver prices of £1,400/oz and £19.23/oz respectively Scotgold expercts a Life of Mine EBITDA of £178 million.

CEO, Richard Gray, said: “We have an exceptionally exciting few weeks ahead of us as we make final preparations for our first gold pour at Cononish by 30 November. 

“As we ramp up production thereafter, the funds raised today will allow us to commit to the expenditures required to build on this anticipated momentum and accelerate the Phase 2 expansion project, whilst at the same time maintaining prudent cash reserves.

“With this strong cash balance in place, we have a clear path to realising the significant value that we believe Cononish and our additional prospects offer to investors.”

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