27th Apr 2021 10:28
(Alliance News) - Scotgold Resources Ltd on Tuesday said it has resolved the various outstanding technical issues affecting the processing plant at Cononish project in the Grampian region of Scotland.
The Australian investor in the gold mining industry said the plant is operating consistently and currently focussing on ramping up to full design capacity expeditiously.
In addition, the company said it has started a review of the mine plan for Cononish at the beginning of April and it has been concluded that the ramp up of underground mining production will be slower than originally planned. Accordingly, the company said it expects production for 2021 to be materially less than the guidance range previously provided of between 28,500 tonnes and 25,700 tonnes of ore processed, and between 7,900 ounces and 7,000 ounces of gold produced.
Scotgold said these delays to the production ramp-up have had and are expected to have a negative impact on its cash position. Therefore, the company said it is investigating financing options, including short-term debt financing from the directors to ensure it has adequate funds available for working capital through this production ramp up period.
Scotgold shares were trading 21% lower in London on Tuesday at 55.70 pence each.
By Evelina Grecenko; [email protected]
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