Adviser quits

Gold mine bites dust as Scotgold in administration

Scotgold could not raise new finance to continue

Scotgold Resources, operator of the gold mine near Loch Lomond, has confimed months of speculation around its future by appointing administrators.

It has also indicated that it is unlikely to return to the stock market after its broker and nominated adviser resigned.

Investors are unlikely to see much of a return on their remaining holdings and all staff have already been put on unpaid leave.

Daniel Bredenkamp and Christopher Pattinson of the Australian firm Pitcher Partners Accountants and Advisors have taken control of the company which ran the Cononish mine in the Trossachs and other facilities in Grampian.

They will work with the directors during the administration period to maximise the outcome for all stakeholders of the company.

Scotgold was founded in Australia and spent more than a decade getting its Scottish gold mine into operation. It produced a limited amount of gold that was turned into jewellery that may now command a rarity value.

After production fell short of target and cash began to run out it struggled to raise new finance and it shares on London’s Alternative Investment Market were suspended in September. Its key shareholder Nathaniel Le Roux resigned on 8 November.

Shore Capital has today resigned as the broker and nominated adviser of Scotgold.  if a replacement nominated adviser is not appointed within a month, the company’s shares will be cancelled.

In the statement issued to the stock market the company said the administrators will consider this issue in more detail over the next few weeks “but based on the information available at this stage the company does not expect to appoint a replacement nominated Adviser”.

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