SGZ.L Share News (SGZ)

LONDON (Alliance News) - Scotgold Resources Ltd announced on Tuesday amended terms to the loan provided by its own chairman, included the removal of any interest.

Scotgold took a GBP1.0 million loan from Chairman Nat le Roux in March last year with an interest rate of 10% a year, but this has now been removed.

The repayment date has also been pushed back to the end of September this year, having previously expired during March.

Chief Executive Richard Gray said: "This extension to the repayment date now gives us the necessary time to progress the funding required to complete the first stage of development of the Cononish gold mine."

"Nat le Roux's continued support and confidence in our project is amply demonstrated by his willingness to forgo all interest due on the loan, which can now be applied for the benefit of all shareholders."

Shares in Scotgold were down 7.4% on Tuesday at 30.10 pence each.