Scotgold Resources Limited (AIM:SGZ) has drawn down the first tranche of the £3mln in new loans that it secured with a syndicate of high net worth investors last month.
The company received a total of £1.2mln on 20 May 2022.
It is anticipated that the remaining £1.8mln will be received on or before 30 June 2022.
Scotgold intends to use the proceeds to fast-track optimisation initiatives at the producing Cononish gold mine in Scotland.
The aim is to achieve a gold production run rate of around 23,500 ounces per year by the end of the first quarter of 2023.
The optimisation initiatives include the enhancement of mining efficiencies, the construction of a tailings thickener, and the construction of an ore sorter.
The loans carry interest of 7%, with warrants attached.