SCOTGOLD Resources has said mining for gold is due to begin in Scotland at the end of February as shareholders gathered for its annual general meeting in Edinburgh.
The company said in a statement to the London Stock Exchange before the agm: “The directors of the company remain confident that all of the company's financial commitments, including those relating to exploration activities, can be funded for the foreseeable future from existing cash resources, loan facilities and anticipated future cash flows from the Cononish gold mine, which is expected to commence production at the end of February 2020.”
READ MORE: Scotgold secures new prospect agreements with Crown Estate Scotland
The junior listed firm also moved to clarify its spending plans after accounts indicated a total of A$16.4 million was due to be spent on exploration and permits for gold mining at sites in Scotland.
Scotgold and its subsidiary SGZ Grampian Ltd said earlier it entered 13 new agreements with Crown Estate Scotland, replacing five earlier arrangements, for locations including Knapdale, Inverliever, Glen Orchy, Glen Lyon and the Ochills.
READ MORE: Scotgold appoints Ian Proctor to board
It said “The figures may change owing to the results of exploration and the available cash resources to fund exploration. For example, the Company's budget for the year ending 30 June 2020 currently anticipates that exploration spending will be approximately A$0.5m.”
Up to 29,000 ounces of precious metals could be mined per year, and the project has an estimated life of eight years. Around 60 jobs could be created.
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