Scotgold raises 9m to push ahead with gold mining project

Scotgold Resources, the company behind plans for a gold mine near Tyndrum, has raised 9m to press ahead with the development.

The move comes in the wake of Scotgold winning planning approval for its plans in February.

The funding round includes 4m through an oversubscribed placing and subscription offer for new shares and a secured loan facility of 5m with chairman and substantial shareholder Nat le Roux.

With existing cash reserves, the company said it now believes it has sufficient funds to build the Cononish gold mine, execute a planned exploration programme and meet ongoing working capital needs.

At full capacity, the Cononish mine is expected to produce on average approximately 23,500 equivalent ounces of gold per annum.

The company`s said its focus is now on the finalisation of the planning agreements, which is expected in the coming weeks.

Scotgold chief executive Richard Gray said: 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.

This article provided by NewsEdge.