10th Feb 2023 10:53
(Alliance News) - Scotgold Resources Ltd on Friday announced plans for resource definition drilling at its Cononish development, after provisionally accruing GBP2.5 million in funds via a capital raise.
Scotgold is a Stirlingshire, Scotland-based gold and silver exploration company, primarily focused on developing the Cononish project in the Scottish highlands.
Shares fell 27% to 42.15 pence each in London on Friday morning, giving Scotgold a market capitalisation of GBP24.88 million.
The company has conditionally raised gross proceeds of GBP2.5 million through a capital raising of 6.3 million new shares at 40 pence each.
Seven directors and a "significant" shareholder participated in the subscription for 1.4 million subscription shares with a total value of GBP574,000.
As part of the capital raising, Scotgold on Thursday said it would be launching a separate retail offer of up to 1.3 million new shares, in order to raise a further amount of up to GBP500,000. The results of this placing will be released on February 16.
Further to the raising, Scotgold said that Bridge Barn Ltd has agreed to defer a total of GBP2.5 million capital repayments due by the company in 2023 by up to nine months.
Bridge Barn is a Suffolk, England-based company which provides debt funding to Scotgold. It is owned and controlled by Nathaniel le Roux.
Scotgold said the potential deferral of capital repayments would be used to further exploration work, including resource definition drilling in Cononish and exploration work in the wider Grampians area.
By Holly Beveridge; Alliance News reporter
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