21st Mar 2014 10:26
LONDON (Alliance News) - Scotgold Resources Ltd Friday said it has raised AUD50,270 through a share issuance of 6.1 million shares at a price of AUD0.008175 per share.
The news comes after the gold exploration and development company, with operations in Scotland, announced in February that it was evaluating plans for its Cononish Gold and Silver Project in Scotland, with the possibility of moving to a smaller project to cut capital and operating costs.
The company, which has sought a range of alternatives to finance the development of the site since April 2013, said it made the decision as continued global economic uncertainty and volatile metal prices meant the funding for mining projects remains difficult.
However, later in February the company entered a binging heads of agreement with three strategic investors which meant that it could raise up to AUD1.8 million, with a further AUD225,000 raised through a wider placement that month. The additional issuance announced on Friday increased Scotgold's total issued shares to 483.9 million.
Scotgold Resources shares were down 0.8% at 0.635 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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