Scotgold Resources, which has been developing Scotland’s only gold mine at Cononish in Argyll, has fallen into administration.

It announced to the stock market that its board of directors had today appointed Daniel Bredenkamp and Christopher Pattinson, of Pitcher Partners Accountants and Advisors (WA) Pty Ltd, as joint and several administrators of Scotgold Resources Limited.

The group said: “The administrators have assumed control of the company and will work with the board of directors during the administration period to maximise the outcome for all stakeholders of the company.

“The administrators will provide updates throughout the administration by way of announcements to the AIM (Alternative Investment Market) and ask that shareholders refrain from contacting the administrators' office at this time.”

⏰⏳We've got a great deal on this Black Friday @heraldscotland . Don't miss out...

Scotgold Resources added: “On 22 November 2023, the company announced that it was considering the appointment of administrators over the coming days.

“As noted in the announcement SGZ Cononish Limited represents the only substantive asset of the company and it is still expected that SGZ Cononish Limited will enter administration in the coming days.”

Trading in shares of Scotgold Resources has been suspended since September 11.

The group also announced today that Shore Capital had “informed the company of its intention to resign as nominated adviser and broker to Scotgold with immediate effect of release of this announcement”.

The miner added: “Pursuant to AIM Rule 1, if a replacement nominated adviser is not appointed within one month of today's date, the admission of the company's shares to trading on AIM will be cancelled. The administrators will consider this issue in more detail over the next few weeks but based on the information available at this stage the company does not expect to appoint a replacement nominated adviser.”

READ MORE: Denial after denial from brass-necked Tory arch-Brexiter

Scotgold Resources, which declared in late September that it had put the majority of its 80-strong workforce at the Cononish mine near Tyndrum on unpaid leave, had said on November 7 it was “considering the appointment of administrators over the coming days”.

The group, which has described itself as “Scotland’s first commercial gold producer”, has in recent years highlighted its ambitions to develop other sites in Scotland.

READ MORE: Ian McConnell: Torn-faced Prestwick Airport’s critics should lose their frowns

Scotgold Resources poured first gold in November 2020 at the Cononish gold and silver mine near Tyndrum.

It noted on October 16, when it revealed it was “in advanced discussions with a new strategic investor”, that it was developing Cononish into a “plus-23,500-ounce gold mine per annum”.

READ MORE: Ian McConnell: Scottish Government's wonderful idea for CalMac ferry services

The group said then: “Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for off-take and gold doré for the Scottish jewellery industry.”

Scotgold Resources said on November 7 that “unfortunately” the financing discussions it had announced on October 16 “have not resulted in an investment at this time”.