3rd Jun 2014 10:47
LONDON (Alliance News) - Gold explorer Scotgold Resources Ltd Tuesday said it has amended the terms of an agreement with three strategic investors announced in February, and is now allowing for two of the investors to appoint a director to Scotgold.
Under the original terms, the company would raise up to AUD1.8 million, with a further AUD225,000 raised through a wider placement. Scotgold Resources said at the time that the first stage of the transaction is an immediate placing of 90 million shares at a price of AUD0.0075 per share to raise AUD675,000.
The deal includes a commitment from both the company and the investors to establish a new marketing company which will market a proportion of the future gold and silver produced onsite at Cononish in the form of dore bars.
Scotgold now says that within six months of the completion of the second placement, Nat le Roux, the former Chief Executive of IG Group PLC and non-executive Director of the London Metal Exchange and another strategic investor, Richard Harris, are each entitled to appoint a director to the company.
The company also said that RMB Resources is seeking permission from its investment committee to extend the term of a loan owed by Scotgold for a period of 30 days until an extraordinary general meeting can be held to complete the finance agreement and to further extend the term of the loan until December 31, 2015, if the agreement is is approved.
Scotgold Resources shares were down 5.3% to 0.450 pence on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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