LONDON (Alliance News) - Scotgold Resources Ltd on Thursday said it submitted the last application to secure planning permits for Cononish gold & silver project in Scotland and has decided to liquidate its French subsidiary.
The mineral exploration company said it has made progress on finalisation of the planning application from the Loch Lomond & the Trossachs National Park Planning Authority.
Scotgold said it has now submitted the most significant of these applications, which details matters involving third parties, which cannot be enforced through the planning notice. The company expects the formal decision notice from Trossachs National Park Planning Authority to be awarded shortly.
Once issued, the decision notice will contain various conditions, some of which must be met prior to the commencement of the development of the Cononish project, Scotgold said.
In addition, the company said Scottish Enterprise offered a Regional Selective Assistance grant of GBP430,000 for the development of the Cononish project. Scotgold estimates costs from the first phase of development to total GBP360,000. However, it noted that extra funds will not have a material impact on the project returns.
The grant is conditional upon the creation of 36 full time employment roles and the first phase capital expenditure payments of GBP8.6 million. Scotgold said it is now in discussion with Scottish Enterprise to finalise the grant contract.
Further grant funding may be available in due course for the planned second phase expansion of the Cononish project, the company said, which will create a further 27 full-time employment roles.
Meanwhile, Scotgold said it has continued to pursue a conclusion to the sale of its French subsidiary, but without success. This is because the subsidiary's interest in the Vendrennes exploration licence in France has no value and the subsidiary holds no assets or liabilities.
As a result, the company intends to commence a liquidation process, which, it said, is not expected to result in any loss in the current period.
Scotgold shares were trading 2.0% lower on Thursday at 24.00 pence each.
