Scottish gold mine firm raises £1.5m amid delays
Scotgold Resources has raised £1.5 million as it continues to face production delays at its Cononish gold and silver mine near Tyndrum.
The funds will be used for working capital through the current production rampup period at the precious metals mine, which lies in the Loch Lomond and the Trossachs National Park.
The firm told investors: “Although progress has been made resolving the various production issues encountered, the lag between the timing of there estimated production build up and sales receipts means that further working capital is required before the project becomes cashflow positive.”
Bridge Barn, a company owned and controlled by Nat le Roux, Scotgold’s chairman, will provide additional debt funding of £500,000, if further funds are required.a
The company confirmed that mining veteran Phillip Day would be joining the board of Scotgold as chief executive from the start of April. His appointment, replacing richard gray, was revealed in February.
Releasing a Cononish update, the firm noted: “Covid-19 continues to have an impact on the Cononish mine’s overall development schedule, as reported on February 26. The company has investigated the possibility of utilising the Corona virus Business Interruptionloan scheme, however it is deemed in eligible under the current rules. Despite the continued delay to ramp up, the company still expects production for calendar year 2021 to be within the guidance range previously provided of between 28,500 tonnes and 25,700 t of ore processed, and between 7,900 ounces and 7,000 oz of gold produced.”