SCOTGOLD Resources, the company bidding to mine for gold near Tyndrum, has turned to its biggest shareholder for a £1 million funding boost after project costs climbed last year, writes Scott Wright.

The firm said it secured the additional facility from Nat le Roux after the capital estimate for phase one of the project increased, alongside expenditure during the extended planning process. The peak funding requirement has increased to £8.7m from £7.4m, it added. Planning permission was secured for its proposed gold and silver mine from the Loch Lomond and The Trossachs National Park Authority before Christmas.

Scotgold told the stock market that the £1m facility has been provided by Bridge Barn Limited, a company owned and controlled by Mr le Roux. The funds are in addition to the firm’s existing £5m facility, provided by Mr le Roux, initially announced in May. Mr le Roux holds a 49.56 per cent stake in the company.

Although it has moved to secure extra financial headroom, Scotgold said that the two main activity streams of mine development and process plant construction remain on schedule to achieve first gold production by the end of 2019. The Cononish mine is expected to produce about 23,500 equivalent ounces of gold annually.

Shares closed down 1.56 per cent, or 0.5p, at 31.5p.