Shares offer

Scotgold in £2m cash call as mine progresses


The Cononish mine is near Loch Lomond

Scotgold Resources, Scotland’s first commercial gold producer, has launched an open offer of shares and a subscription to raise between £1.5m and £2m to acquire a drill rig and for additional working capital.

It said the transition to the long hole stoping mining method at its Cononish gold mine near Loch Lomond has progressed well and is in line with management’s mine plan.

Based on indications received, the directors expect that the open offer will raise a minimum of £1m.

Qualifying shareholders can apply for open offer shares at a price of 15p on a 3-for-20 basis and representing a discount of 6.25% to the middle market closing price of 16p on 20 April.

Phil Day, CEO of Scotgold, said: “Long hole stoping at Cononish is performing well. With the previous optimisation initiatives completed in 2022 in the underground mine and processing plant, we are now removing ore from the mine and producing gold concentrate through the processing plant in line with our mine plan. 

“The additional funds raised will allow us to purchase a more advanced resolution definition drill rig, to further improve development of the underground mine and our grade control modelling. This will be invaluable as we progress towards full production at Cononish and for future development of its current 8-year mine life.”

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