Gold miner says funds will enable it to develop Scottish gold mine.
Scotgold Resources is said to have conditionally raised about £475,000 though a share placing on the Alternative Investment Market (AIM), with 15.3 million new shares priced at 3.1p each.
The shares are expected to admitted to the AIM this Friday, December 7. Scotgold Resources has also agreed a loan extension of £320,000 through RMB Resources, having already secured £1.18m of funding through the company – a mining finance sector of South African bank FirstRand.
The Scotgold mine, located near Tyndrum in Scotgold, began developments several years ago to launch the first commercial gold mine in Scotland, having secured the site in the 1980s.
Scotgold held its AGM in October, with its executive chairman John Bentley stating that he was confident that the company could raise the £25 million needed to fully set up the mine and begin production in early 2014.
Bentley said of the current fundraising: “This fundraising is an important step towards the commercialisation of our project at Cononish. We now have funds in place in order to complete our preparatory work and look forward to completing the development study early next year.”
On November 15 Scotgold announced a new figure for its mining expectations, having measured about 24,000oz of gold at the site, placing greater certainty on the presence of the metal, with a further 58,600oz classified as “indicated”.
Scotgold chief executive Chris Sangster and Fifi Bijoux boss Vivien Johnston, who is working as a consultant on the mining project, were named as Pursuit Trailblazers in the Professional Jeweller Hot 100 2012 in association with The Company of Master Jewellers in September.
About 104,500oz of silver has been measured at the site, 229,500oz indicated and 297,300oz inferred.