Scotgold Resources has raised around £570,000 in its latest rights issue to help fund development of its Cononish mine in Argyll.
The AIM-listed miner welcomed the 84 per cent take-up of the offer, which was not underwritten, leaving a shortfall of over 18m shares to be placed to raise a further £109,000.
Richard Gray, chief executive, commented: "We are extremely pleased with the take up of the rights issue and the support it demonstrates from our shareholder base.”
Shareholders were invited to subscribe for one new share for every 10 held, at an issue price of 1.3 (Australian) cents, together with one free attaching unlisted option per new share subscribed. The options are exercisable at 0.01p by 30 September 2017. The shares are currently at 0.06p.
Following the rights issue the directors are reserving the right to place the shortfall shares at 1.3 cents each (with free attaching options) at their discretion within three months.
Mr Gray said: “Given the high level of interest shown, I fully expect that the directors will exercise their discretion and place the outstanding shortfall within the prescribed period. “
He added: “The company is continuing to advance the financing options for the Cononish project and we will and we will keep our shareholders informed as and when the next milestones are reached.”
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