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Cononish Financing Update

26 Nov 2013 07:00

RNS Number : 8914T
Scotgold Resources Ltd
26 November 2013
 

26 November 2013

 

SCOTGOLD RESOURCES LIMITED

("SCOTGOLD" OR "THE COMPANY")

 

CONONISH FINANCING UPDATE

 

 

 

Since publishing the results of the Cononish Gold and Silver project Development Study in April 2013 (see release Cononish Development Study Results 30/04/2013), the Company has sought a number of alternatives to finance the proposed development and bring it into production within a reasonable time frame. However, access for the Company to the requisite funding described under the Development Study remains difficult.

 

The Company has identified a number of possible 're-engineering' opportunities to advance Cononish whilst reducing the capital required to bring the project to production. The board believe that these opportunities have considerable merit under current market conditions.

 

Accordingly, the Company is in the early stages of considering a smaller initial project, treating higher grade material within the resource through a smaller processing facility. Examination of the Cononish resource indicates an overall 'higher' grade zone above the current adit suitable to be mined separately from other lower grade material above and below this. Internal, 'pre - scoping' estimates indicate that the capital expenditure could be reduced significantly. Mining of the higher grade initial portion of the resource would not preclude mining the balance of lower grade material should gold prices and cost profiles be suitable at that stage but this would have to be decided under a separate mine plan. Any alteration to the project will necessarily require discussion with the Loch Lomond and the Trossachs National Park Planning Authority.

 

The Company has requested that an extension to the RMB loan be made. It is envisaged that the period of extension is likely to be directly related to the amount of working capital available, consistent with the terms of the existing loan which require a minimum of three months working capital to be held in cash. As separately announced today, the Company is also undertaking a rights issue to raise further working capital.

 

In addition, the board has been advised by the board of Luiri Gold Ltd ("Luiri"), the 100% parent of Zio Holdings Ltd which took part in a placing in September 2013 with a view to carrying out due diligence on Scotgold's assets, that Luiri will not, in the light of the current market conditions, pursue a corporate transaction with the Company.

 

Luiri currently holds a 4.5% interest in the Company's issued share capital

 

 

 

 

 

 

 

 

For further information please contact:

 

United Kingdom:

Scotgold Resources Limited

Westhouse Securities Limited

Bankside Consultants

John Bentley (Chairman)

Tel: + 44 (0)7785 921505

 

Chris Sangster (CEO)

 

Richard Baty / Martin Davison

Simon Rothschild

Tel: +44 (0)77 2562 9509

Tel: +44 (0)20 7601 6100

Tel +44 (0)20 7367 8888

 

Australia:

Scotgold Resources Limited

Professional Public Relations

Peter Newcomb

(Company Secretary)

 

Belinda Newman

Tel: +61 (8) 9222 5850

 

Tel: +61 (8) 9388 0944

Mobile: +61 (0) 401 802 210

 

 

 

 

 

 

 

 

Background

 

Scotgold Resources

• Scotgold Resources is a mining exploration and development company listed on the Australian Securities Exchange in January 2008 and the AIM market of the London Stock Exchange in the UK in February 2010.

• The Company was formed with its sole focus on exploring for gold and silver in Scotland, with the already identified Cononish Gold and Silver Project as its core asset. Once in production, the Project will be Scotland's first commercial gold mine.

• The Company holds Crown options of some 4200km2 covering the highly prospective Dalradian terrain in the SW Grampians of Scotland

• Scotgold acquired the Cononish Gold and Silver Project in 2007 and has been working towards bringing the project to production in conjunction with its ongoing exploration efforts at Cononish and in the south west Grampians.

• In July 2011 Scotgold submitted its reapplication for planning permission, which was recommended for approval in October 2011 subject to finalizing conditions and various legal agreements

• In February 2012, the Decision Notice granting planning permission was issued by the Planning Authority and the Crown lease granted in May 2012

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCFEIFWIFDSESF
Date   Source Headline
22nd Oct 20187:00 amRNSDirector Dealing
18th Oct 201812:36 pmRNSTR1 form
18th Oct 201812:31 pmRNSPlanning progress at Cononish
15th Oct 20185:56 pmRNSDirector/PDMR Shareholding
9th Oct 20187:00 amRNSSubscription to raise £750,000
2nd Oct 20184:29 pmRNSAmendment to Secured Loan Agreement
27th Sep 201812:48 pmRNSAnnual Report Directorship Clarification
27th Sep 201811:41 amRNSANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2018
19th Sep 201811:13 amRNSIssue of Equity
13th Aug 20182:15 pmRNSProject Update on Cononish Gold and Silver Mine
22nd Jun 201812:59 pmRNSUpdate on sale of French Subsidiary
18th Jun 20187:00 amRNSAppointment of Directors and change of auditors
14th Jun 20181:34 pmRNSHolding(s) in Company
24th May 20189:26 amRNSHolding(s) in Company
21st May 20185:20 pmRNSHolding(s) in Company
21st May 201811:50 amRNSHolding(s) in Company
18th May 20187:00 amRNSPlacing, Subscription and Debt funding
3rd May 201811:16 amRNSGrant of Warrants to Executive Management
23rd Mar 20187:00 amRNSConversion of Options and Issue of Equity
20th Mar 20187:00 amRNSAmendment to Loan Agreement
19th Mar 20187:00 amRNSEarn In Agreement to Portuguese Subsidiary
15th Mar 20187:10 amRNSConditional Sale of French Subsidiary
13th Mar 20189:48 amRNSInterim Financial Report - REPLACEMENT
13th Mar 20187:21 amRNSInterim Financial Report
8th Mar 20187:00 amRNSAppointment of Nominated Adviser and Joint Broker
27th Feb 20185:50 pmRNSPlanning Application Granted
15th Feb 20183:40 pmRNSPlanning Application
12th Feb 201812:07 pmRNSPlanning Application
11th Jan 20181:50 pmRNSHolding(s) in Company
5th Jan 201811:41 amRNSHolding(s) in Company
4th Jan 201812:01 pmRNSCompletion of Placing
4th Jan 201811:05 amRNSDirector/PDMR Shareholding
21st Dec 20177:00 amRNSResults of Rights Issue
19th Dec 20174:40 pmRNSSecond Price Monitoring Extn
19th Dec 20174:35 pmRNSPrice Monitoring Extension
6th Dec 20173:00 pmRNSRights Issue - Extension of Acceptance Period
30th Nov 201711:56 amRNSPLANNING APPLICATION
28th Nov 201711:19 amRNSConversion of Options and Issue of Equity
28th Nov 201710:22 amRNSResults of Annual General Meeting
13th Nov 20177:00 amRNSRights Issue
8th Nov 20173:15 pmRNSConversion of Options and Issue of Equity
7th Nov 201712:17 pmRNSNotice of Annual General Meeting
9th Oct 20177:00 amRNSDirectorate Change
4th Oct 20177:00 amRNSPresentation
2nd Oct 20174:18 pmRNSExercise of Options and Issue of Equity
29th Sep 20177:00 amRNSAnnual Results
31st Aug 20179:40 amRNSChange of Registered Office
25th Aug 201710:30 amRNSCompletion of Share Consolidation
21st Aug 201712:56 pmRNSResult of Meeting
18th Aug 201711:20 amRNSPlanning Update

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