18th May 2018 10:42
LONDON (Alliance News) - Shares in Scotgold Resources Ltd rose Friday as it said the final tranche for the development of Cononish gold mine in Scotland has been raised through a combination of equity and debt.
Shares in the gold mining investment company were up 21% at 33.30 pence each on Friday.
The company raised GBP4.0 million through a placing and subscription of 14.5 million shares at a price of 27.5 pence per share. It further secured a GBP5.0 million secured loan facility from Chairman Nathaniel Le Roux.
Scotgold said it now has enough funds to build up the Cononish mine and launch an exploration programme, while meeting ongoing working capital needs. At full capacity, the mine is expected to produce on average 23,500 ounces of gold equivalent per annum.
"This is a momentous occasion for the company and for gold production in Scotland. We have seen a number of significant milestones achieved by the company in recent years, culminating now in what will be a new gold mining industry in the Scottish Highlands. I would like to thank all our stakeholders for their longstanding support and look forward to the next exciting chapter in our company's development," said Chief Executive Richard Gray.
Scotgold Resources now has 42.9 million shares issued overall.
Related Shares:
SGZ.L