25th Feb 2014 15:47
LONDON (Alliance News) - Scotgold Resources PLC Tuesday said it has entered a binding heads of agreement with three strategic investors who will take a significant holding in the company.
The gold exploration and development company said the agreement will result in the company raising up to AUD1.8 million, with a further AUD225,000 raised through a wider placement.
Scotgold Resources said 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 company said the major investor is Nat le Roux, the former Chief Executive of IG Group PLC and non-executive director of the London Metal Exchange.
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.
"This product will be identifiable and marketable as Scottish gold and silver and Scotgold will undertake to sell it to Marketco at a premium of 10% to the Comex Fix less any costs associated with refining the dore bars," the company said in a statement.
Scotgold will hold 40% of the shares in Marketco, 20% will be held by public interest entities including the Strathfillan Community Development Trust, with the balance being held by the Investors.
Scotgold shares were down 7.2% to 0.520 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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