Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Scotgold Resources shares leap up after securing funding for Cononish project

The company said the new funding together with existing cash reserves was sufficient to construct the Cononish gold mine in Scotland
RBS Scottish bank note
The group said its focus was now on the finalisation of necessary planning agreements

Scotgold Resources Limited (LON:SGZ) saw its shares soar in mid-morning trading Friday after it secured the final tranche of funding for the construction of the Cononish gold mine.

The AIM-listed gold miner said a total of £9mln had been raised through a combination of equity and secured debt, with £4mln raised before expenses through an oversubscribed placing of over 14mln new shares and £5mln through a secured loan facility with Nathaniel le Roux, the company’s non-executive chairman.

READ: Scotgold adjusts the terms of loan from major shareholder

The company said the new funding together with existing cash reserves was sufficient to construct the Cononish gold mine in Scotland, as well as to execute a planned exploration programme and meet ongoing working capital needs.

The group added that its focus was now on the finalisation of the necessary planning agreements, which is expected in the coming weeks. In the interim, site access preparations have been undertaken, detailed construction activity planning is underway and an application for a grant from the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA) is in process.

Once these are successfully concluded, the company said the final project schedule will be determined.

Richard Gray, Scotgold chief executive, said: "This is a momentous occasion for the Company and for gold production in Scotland. We have seen a number of significant milestones achieved by the Company in recent years, culminating now in what will be a new gold mining industry in the Scottish Highlands.”

Scotgold shares were up 23.6% at 34p.

View full SGZ profile View Profile

Scotgold Resources Timeline

Related Articles

June 21 2018
The company's key operations are located in South Africa, Ghana and Kenya.
zeolite mine
September 14 2018
Zeolite may not be the most well-known mineral but it has wide applications, such as use in animal feed, as a pozzolan in cement and as an additive to soil, which could be used for cannabis plants
May 23 2018
Chaarat's bold bid for the Kumtor mine is the first of many potential deals

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use