Scotgold losses widen as debt deadline nears

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Scotgold Resources, which is aiming to create Scotland’s only commercial gold mine near Tyndrum, has revealed that its annual losses have almost doubled.

The miner is due to repay a £1.5 million loan to RMB, the mining finance arm of South African bank FirstRand, in December, and chairman John Bentley said the firm was working with RMB to “evaluate the options available” to move its Cononish project forward.

He added: “Since the financial year end the company has closed a small equity placement with a potential strategic partner and the board is actively pursuing further financing.”

For the year to the end of June, Scotgold posted a pre-tax loss of almost A$2.6m (£1.5m), up from A$1.3m a year earlier.

Bentley said: “The Cononish gold and silver project, although small by international standards, has the ability to provide a post-tax 23 per cent rate of return at $1,300 an ounce, which is at the lower end of the current trading range for gold and, importantly, it has all the consents necessary to allow it to be in production within 18 months of development financing being secured.”