6th Jan 2014 10:23
LONDON (Alliance News) - Scotgold Resources Ltd Monday said shareholders have taken up 90% of shares it offered in its right issue, meaning the company raised AUD742,599.
The gold, silver and base-metal exploration company had hoped to raise AUD830,871 by issuing 166.2 million new shares at 0.50 cents each.
However, the company ended up issuing about 148.5 million shares. The company said it would place a further 17.7 million so-called shortfall shares at 0.50 cents each in order to make up the rest of the financing requirements for its Cononish gold and silver project in Scotland.
Scotgold went for a rights issue after it ran into trouble over access to funding for the Cononish project.
Executive Chairman John Bentley said the rights issue had been "excellent for the company".
"The GBP1.5m loan from RMB Australia Holdings Ltd will now be extended through to June 2014," Bentley said in a statement. "Moreover, the funds will enable the company to progress further studies on re-engineering the Cononish development project with a view to materially reducing the upfront capital expenditure whilst also increasing the grade of treated ore by targeting the readily accessible high grade areas of the mine," he added.
The new shares are expected to begin trading on AIM on around January 10.
Scotgold shares were Monday quoted at 0.5 pence, up 0.025 pence, or 5.3%.
By Samuel Agini; [email protected]; @samuelagini
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