(Alliance News) - Scotgold Resources Ltd on Thursday said its subsidiary SGZ Grampian Ltd has entered into 13 new option agreements with Crown Estate Scotland.
Grampian is focused on identifying gold and base metal mineralisation within the Grampian Terrane in Scotland.
Scotgold said the new agreements replace the five existing option deals entered into in November 2015. These five deals covered an area of 800 square kilometres each and were for a term of six years.
These agreements provided SGZ Grampian with the right to a mining lease, should a development project be identified as a result of exploration undertaken by the company within the option area and the relevant planning authority being minded to grant planning permission.
Under these five agreements, SGZ Grampian was required to reduce the area of each agreement to a maximum of 250 square kilometres by the third anniversary of each agreement but had the right to apply for new agreements to cover "shed" areas.
Scotgold said its unit has conducted a review of the geological prospectivity, current land use and general practicality of undertaking future development within the original option areas and concluded that it wished to retain 13 new blocks of 250 square kilometres or less.
Therefore, the Australian investment firm said it was agreed that rather than retain the five original, albeit reduced, option areas and apply for eight new option areas, the SGZ Grampian would apply for 13 new option areas and surrender the original agreements.
Scotgold shares were trading 2.3% higher in London on Thursday at 74.15 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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