First Scottish gold sale to jewellery industry agreed

TO GO WITH AFP STORY BY HUI MIN NEO
Gold bars are stacked on April 6, 2009 at a plant of gold refiner and producer Argor-Heraeus in Mendrisio, in the southern Swiss canton of Ticino. While the world grapples with the biggest economic crisis since the Great Depression of the 1930s, demand for the firm's watch and jewellery components business has slumped as Swiss and Italian watchmakers trim production. Meanwhile, investors are hoarding gold bars -- an age-old insurance in times of war or calamities -- sending demand for the group's bullion production soaring. To cope with the new balance of demand, Argor is shifting manpower from its semi-finished products division to gold production and is running day and night. With orders for gold bars piling up, delivery times now stretch to two months instead of 10 days.               AFP PHOTO / Sebastian Derungs (Photo credit should read SEBASTIAN DERUNGS/AFP/Getty Images)

Scotgold Resources Ltd has announced that a sales agreement has been signed with two of Scotland’s manufacturing jewellers.

This agreement covers the first refining batch (approximately 16oz) of Scottish Gold made available for jewellery, and only the second refining batch produced to date, from Scotgold’s Bulk Processing Trial (BPT) at the Cononish Gold and Silver Mine.

Scotgold CEO, Richard Gray, comments: “This is yet another pleasing milestone and validates our belief in the strength and value of combining Scottish Gold of proven provenance with the skill and prestige of the Scottish jewellery industry”.

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The sales agreement involves significant input from both Baird & Co, as the appointed refiner, and the Edinburgh Assay Office.

The Dragonfly Initiative managed the negotiations as Scotgold’s appointed consultant. The company oversaw the marketing and commercialisation of the company’s Scottish Gold.

Whilst all the parties have agreed to keep the precise terms of the sale confidential, the premium received was in excess of the 30% reserve stipulated for the Scottish Gold Rounds, auctioned in November 2016.

The sales agreement includes detailed conditions for the use and marketing of the Scottish Gold, which are designed to protect the branding of this rare and precious commodity and will form the basis of all such future sales.

In addition to setting out the commercial terms for this first sale to the Scottish jewellery industry, the sales agreement includes detailed conditions for the use and marketing of the Scottish Gold, which are designed to protect the branding of this rare and precious commodity and will form the basis of all such future sales.

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