Scotgold Resources (AIM:SGZ) plans new gold exploration in Scottish Highlands

Scotgold Resources will raise £2.5 million to fund growth plans that include exploration in the Scottish Highlands.

According to Cononish Gold and Silver Mine in Argyll, a possible deferral of loan repayments could be used to fund additional drilling in Tyndrum or exploration work in the Grampians.

Scotgold reported last month that gold production for the year ended December 31, 2022, was 8,564 ounces. This compares to 2,623 ounces in 2021.

It stated that it was focusing on an ongoing ramp-up of 2,000 ounces per month.

It announced today that it had conditionally raised £2.5million through capital raising and subscriptions from some directors for 6.25m ordinary shares at 40p each share.

The subscription includes seven directors of Scotgold, as well as a significant shareholder.

Scotgold stated that the 6.25 million new shares represent 9.48 per cent of the enlarged share capital.

It stated that Bridge Barn Limited, Nathaniel le Roux’s company and the provider of debt financing to the company, had agreed to delay capital repayments of £2.5 million due this calendar year for up to nine months.

Scotgold stated to the City that the deferral of capital repayments could be used for exploration work, including resource definition drilling in Cononish as well as exploration work in the larger Grampians region.

In early trading, shares were down nearly 30%

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