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ScotGold Resources clarifies exploration spending plans after licence restructure

The miner was recently granted approval to restructure its five existing mining licences into thirteen new ones.

Scotgold Resources Limited -
ScotGold says it is well funded for its exploration plans

ScotGold Resources Limited (LON:SGZ) has clarified the amounts it has to spend on the exploration of its permits in Scotland.

Latest accounts indicated minimum exploration expenditure of A$16.4mln (£8.6mln) over the six-year span of the licences.

Scotgold, though, said these are indicative numbers made when it applied to change its licence structure and not amounts it is contractually obliged to spend.

The miner was recently granted approval to restructure its five existing mining licences into thirteen new ones.

What is in the accounts reflects the potential amount if it retains all 13 licences until 2024, said the junior, and is subject to change as exploration results come in and depending on cash resources.

Landowner Crown Estate Scotland reviews progress on the licences every two years.

In the current year to 30 June 2020, Scotgold says exploration spending will be an approximate A$0.5mln (£250,000) or slightly below last year.

The company added it is confident its commitments can be funded for the foreseeable future from existing cash resources, loan facilities and anticipated future cash flows from the Cononish gold mine.

Quick facts: Scotgold Resources Limited

Price: 63.5 GBX

AIM:SGZ
Market: AIM
Market Cap: £32.61 m
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Scotgold Resources Limited's (LON:SGZ) Richard Gray speaks to Proactive London's Andrew Scott following the news they've restructured their mining permits in the Grampian region of Scotland. The amount of land covered by the permits reduces to about 2,900sq km from 4,000sq km but Gray says...

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