14th Oct 2014 09:18
LONDON (Alliance News) - Scotgold Resources Ltd Tuesday confirmed it is planning to raise USD3.4 million via a non-renounceable one-for-one rights issue.
The company said it would issue 569 million shares at 0.6 US cents per share.
The offering has been fully underwritten by company directors Nathaniel le Roux and Alexander Littlejohn. Littlejohn was appointed as the company's chairman on Monday.
The company first announced the rights issue on Monday, saying the deal will put it in a more "robust" financial position. It said it would use the proceeds from the issue for exploration work, debt retirement, working capital and developing the Cononish mine.
Scotgold shares were untraded on Tuesday, quoted at 0.45 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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