Scotgold announces that it has decided not to extend the Pomar Exploration Licence in Portugal and has applied to the Director General of Energy and Geology ("DGEG") to terminate the License.
As announced on 26 Feb 2019, Scotgold's 'earn in' agreement on Pomar was terminated. Scotgold continues to believe in the potential of the Pomar licence and has enjoyed a constructive working relationship with the DGEG, however the exploration results to date, including the most recent soils sampling, suggest a significant further work program would be required to realise this potential. As the Company's short term focus is on the successful development of the Cononish Gold and Silver Mine, (the "Cononish Project") and advancement of the encouraging exploration results in the vicinity of the Cononish Project, the Company has taken the decision to terminate the License and minimise further expenditure at this time.
Richard Gray, Chief Executive Officer of Scotgold commented:
"Our belief in the potential of this licence and our positive experiences in Portugal made this a hard decision. Our critical focus at this time however has to be the development of the Cononish Project and securing positive cashflow in 2020. This will enable us to accelerate our exploration activities in Scotland and ultimately reconsider other opportunities in similar low political risk jurisdictions."
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information please contact:
Scotgold Resources Limited
Chief Executive Officer
SP Angel Corporate Finance LLP
Nomad and Joint Broker
Ewan Leggat / Charlie Bouverat
Capital Markets Consultants
Tel: +44 (0)1838 400 306
Tel +44 (0) 20 3470 0470
Tel: +44(0)7703 167 065
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