Scotgold Resources has raised the final tranche of development funding for its gold mine in Scotland. As noted in the March Interim Financial Report and earlier in its Rights Issue announcement in November 2017, the company sought a final round of development funding after the successful Planning Permission determination which was announced on 27 February 2018. This funding has now been completed as outlined below.

• In total £9,000,000 has been raised through a combination of equity and secured debt
• Scotgold has raised approximately £4,000,000 before expenses through an oversubscribed placing
• A Secured loan facility of £5,000,000 has been agreed with Nathaniel (Nat) le Roux, the company’s Non-Executive Chairman and substantial shareholder
• Together with existing cash reserves, the company believes it has sufficient funds to build the Cononish gold mine, execute a planned exploration program and meet ongoing working capital needs
• At full capacity, the Cononish mine is expected to produce on average approximately 23,500 oz of gold equivalent per annum.

The focus is now on the finalisation of the necessary planning agreements, which is expected in the coming weeks.  In the interim; site access preparations have been undertaken, the detailed construction activity planning (which is expected to be required under the planning agreements) is underway and an application for a RSA grant is in process. Once these are successfully concluded the final project schedule can be determined.

Richard Gray, CEO commented: “This is a momentous occasion for the company and for gold production in Scotland. We have seen a number of significant milestones achieved in recent years, culminating now in what will be a new gold mining industry in the Scottish Highlands. I would like to thank all our stakeholders for their longstanding support and look forward to the next exciting chapter in our company’s development”