(Alliance News) - Scotgold Resources Ltd on Wednesday said it has secured a USD500,000 advance to assist with its short-term working capital from its gold offtake partner.
Scotgold shares rose 18% to 14.80 pence each in London on Wednesday afternoon.
Scotgold is a Stirlingshire, Scotland-based gold and silver exploration company, primarily focused on developing the Cononish gold and silver mine in the Scottish highlands.
The firm said the funds, which will be received on Wednesday, will be repaid by offsetting SUD100,000 against monthly deliveries from July to November 2023, with interest of the Secured Overnight Financing Rate, as well as 4.5% per year.
The current SOFR is 4.8%.
The company added that its debt funding provider Bridge Barn Ltd, which is owned by Scotgold Non-Executive Director Nathaniel Le Roux, has agreed to postpone interest payments worth GBP450,000 that are currently due, up to and including December 1.
The company also noted that it has commenced long hole stope mining on Tuesday, with the first blast taking place on the eastern section of the 420 West drive at its Cononish project. The first said the first ore is being processed to produce sellable gold concentrate.
By Harvey Dorset, Alliance News reporter
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