Scotgold aims to keep the lights on via fundraising

Chairman Nat Le Roux said the miner was making significant progress. Picture: Robert Perry

PRECIOUS metals miner Scotgold Resources is to tap shareholders in a bid to raise almost A$1.5 million (£700,000) to provide working capital as it develops plans for its Cononish project.

A recent bankable feasibility study for the Aim-quoted firm had shown the £24 million scheme, which aims to produce 23,370 ounces of gold, would be profitable with gold prices as low as $700 an ounce.

It is now offering investors the option to buy one new share for every ten they already hold through a rights issue.

In a letter to shareholders, chairman Nat Le Roux said the miner was making “significant progress” on the scheme, in the Loch Lomond and the Trossachs National Park.

He added: “The company will now focus on securing suitable and sufficient project financing on commercially suitable terms, which it anticipates may take several months. In the meantime, the company requires ongoing capital.”

Scotgold’s shares closed down 3.7 per cent at 0.65p.