Going for gold: Miner upbeat on Cononish prospects

Scotgold Resources has insisted it is in an “excellent position” to press ahead with plans for a scaled-down gold mine at its site near Tyndrum after unveiling a sharp reduction in first-half losses.

Scotgold Resources chief executive Chris Sangster. Picture: Donald MacLeod

The Aim-quoted firm, which is also listed in Australia, has seen its ambitions bolstered by plans to raise almost £1 million from a trio of investors including Nat le Roux, the Scots-born former boss of spreadbetting group IG.

Chief executive Chris Sangster, pictured, said the fundraising, which follows a £452,000 rights issue, could pave the way for the firm to start producing gold and silver from its Cononish mine within 18 months.

He added: “The company is in an excellent position to further its stated intention to examine a smaller initial Cononish project treating higher-grade material through a less capital-intensive processing facility.”

Lower costs helped pre-tax losses for the six months to 31 December narrow to A$1m (£544,000), from A$1.7m a year earlier.

GARETH MACKIE