Mine update

Gold miner Scotgold in funding talks with new party

Mining operations are at risk

Scottish gold miner Scotgold Resources is in discussions with a new potential investor after talks with an earlier party collapsed.

The company said that administration remains on the table if the latest talks break down and it fails to secure the required capital to continue operations at Cononish near Loch Lomond.

Aim-quoted Scotgold announced on 2 October that the most advanced prospective investor had decided not to proceed with investment in the company and had withdrawn from the discussions.

In a statement today it said: “Further to this, the company is now in advanced discussions with a new strategic investor which, should final agreement be reached, is expected to provide sufficient funding for the company to continue as a going concern.

“Whilst financing discussions are at an advanced stage, in the event the company cannot secure financing with the new strategic investor, this could result in the appointment of administrators.”

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