Scotgold Resources has raised £500,000 in a placing with new shareholders, in the same week it poured demonstration gold from its Scottish gold and silver mine.
The AIM-quoted company, also listed in Australia, said it had placed 62.5million shares at an issue price of 0.8p, just below yesterday’s market price of 0.84p.
It said the funds would be used to “commence the technical studies to investigate the viability of a phased approach to the development of the Cononish Gold and Silver Project and as appropriate revise the Cononish Bankable Feasibility Study”.
They would also provide additional working capital during the previously announced bulk processing trial to ensure that the anticipated premium on verified Scottish gold could be optimized.
“This will require the development of a comprehensive and long term marketing strategy and an accumulation of gold stocks, thus delaying for a short period the proceeds from gold sales.”
The placing follows a similar one with new shareholders in March, which raised £500,000 but at 0.6p a share.
Richard Gray, chief executive, commented: “Following the successful first gold pour at the Cononish project yesterday, this fund raise, together with anticipated revenue from gold sales, means the Company is now well placed to advance Cononish beyond the BPT (bulk processing trial).”
On Wednesday the firm said around 10 ounces of gold had been produced in a trial crushing of 2400 tonnes of ore, stockpiled by the mine’ s previous owners, using a small-scale pilot plant.
Mr Gray said the six-month trial aimed to send between 400 and 600 ounces to the jewellery market, to test the marketability and profitability of Scottish gold.
The processing trial was given the go-ahead after permission for the pilot plant was granted by the Loch Lomond and the Trossachs National Park Authority earlier this year.
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