Scottish gold miner looking for new sources of funding

Shares in Scotgold Resources plunged yesterday after the gold and silver prospector revealed it is seeking new funding options to support its operations.

As it revealed a full-year loss of $1.34 million for the year to June 30, the miner stated additional resources may be required to “continue to fund its operations and further its mineral explorations and evaluation activities” over the next 12 months.

The group has a pipeline of possible precious metals mining projects but the most advanced is the Cononish development near Tyndrum.

An ongoing bulk processing trial at the site led to the auction sale of the first commercially produced Scottish gold during the year.

The company said it was evaluating three potential sources of additional cash – loan funding, asset sales and a new securities issue of up to $2m.

It said it had also received a “letter of financial comfort” from its major shareholder that sums of $1.74m will not be called for payment until the firm is in a position to do so.

Shares in Scotgold closed the session down 4p at 28.50p yesterday.