Scotgold Resources expects administration ‘soon’
Scotland’s gold mining operator is expected to appoint administrators in the coming days after struggling to raise new finance.
Scotgold Resources, which has a mine in the Trossachs and other operations in Grampian, said this morning said it is continuing to work with advisers and expects to proceed “soon” with an administration process for SGZ Cononish Limited, the business running the Trossachs mine.
In addition, Bridge Barn, which is the secured creditor over the assets of SGZ Cononish Limited have notified the company that it enforced its rights under the loan agreement signed on 17 May 2018. These include rights over the shares held by the company in SGZ Grampian Limited.
SGZ Cononish Limited and SGZ Grampian Limited represent the only substantive assets of the company and as such the board is also exploring the appointment of administrators in Australia over Scotgold Resources Limited.
The board of the AIM-traded company announced on 7 November that it was considering the appointment of administrators after talks with a potential investor broke down.
A day later, major shareholder and director Nathaniel le Roux notified the board of his resignation as a director of the company and its subsidiary companies with immediate effect.