(Alliance News) - Scotgold Resources Ltd on Friday said it will raise additional funds via a share subscription and open offer, following encouraging progress at the Cononish gold mine in Scotland.
The Scotland-based commercial gold producer told investors that the transition to the long hole stoping mining method at Cononish has progressed well, and is in line with management expectations.
The grade of stope ore is on plan, beginning at 4.9 grams per tonne on the first cut and producing gold concentrate at 230 to 300 grams per tonne of gold. Scotgold expects this grade to improve as it brings the stoping front back into the higher-grade areas of the stope length.
The company on Friday also announced plans to raise additional equity, both to procure a resolution definition drill rig to bolster grade control modelling for mine planning and for additional working capital, as Cononish continues to be developed towards full production.
The fundraising will raise between GBP1.5 million and GBP2.0 million, by way of a proposed subscription as well as an open offer, both at a price of 15 pence per share. Scotgold directors expect that the open offer to raise a minimum of GBP1.0 million.
Scotgold shares were trading 3.4% higher at 16.55 pence each in London on Friday morning.
By Holly Beveridge, Alliance News reporter
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