The Cononish gold mine
JOHANNESBURG (miningweekly.com) – Aim-listed Scotgold Resources has raised £9-million through a combination of equity and secured debt, which, together with existing cash reserves, will be sufficient to build the Cononish gold mine, in the Scottish Highlands.
The company raised £4-million in an oversubscribed placing of 14 545 455 shares at 27.5p each and £5-million in a secured loan from nonexecutive chairperson Nathaniel le Roux.
"This is a momentous occasion for the company and for gold production in Scotland. We have seen a number of significant milestones achieved by the company in recent years, culminating now in what will be a new gold mining industry in the Scottish Highlands,” CEO Richard Gray said on Friday.
Scotgold’s focus is now on the finalisation of the necessary planning agreements, which are 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 under way and an application for a regional assistance grant is in process. Once these are successfully concluded the final project schedule can be determined.
At full capacity, the mine will produce about 23 500 oz/y.