6 Jan 2014 09:42
6 January 2014
The Company Announcements Office
Australian Stock Exchange Limited
4 Floor 20 Bridge Street
SYDNEY NSW 2000
NON-RENOUNCEABLE RIGHTS ISSUE
The Directors of Scotgold are pleased to announce that the Non-Renounceable Rights Issue (Rights Issue) closed on 31 December 2013 with eligible shareholders applying to take up 90% of the Rights Issue.
The Company advises that it received entitlement acceptances for 86,865,252 shares (53%) from eligible shareholders, together with applications for additional shares of 61,654,550 (37%) under the Rights Issue (together New Shares).
Funds raised from the Rights Issue totalled $742,599.
The allotment and issue of the New Shares will take place today, 6 January 2014, and dispatch of holding statements is expected to take place on 7 January 2014.
Application will be made for the 148,519,802 New Shares to be admitted to AIM and it is expected that this will occur on or around 10 January 2013.
Following the issue of the New Shares the Company will have a total of 370,085,541 shares on issue. This figure should be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their substantial holding in, or a change to their substantial holding in the Company.
The Directors intend to place up to a further 17,654,502 as shortfall shares under the Rights Issue at 0.50 cents per share (Shortfall Shares) with eligible applicants as described in Section 1.11 of the Offer Document. A further announcement will be made in due course regarding the placement of the Shortfall Shares.
John Bentley, Executive Chairman, said that "this is an excellent result for the Company as the £1.5m loan from RMB Australia Holdings Ltd will now be extended through to June 2014. Moreover, the funds will enable the Company to progress further studies on re-engineering the Cononish development project with a view to materially reducing the upfront capital expenditure whilst also increasing the grade of treated ore by targeting the readily accessible high grade areas of the mine."
Yours faithfully
P J Newcomb
Company Secretary