Scotgold shares rise on mine hopes

SHARES in Scotgold Resources, the company behind plans to set up Scotland’s only commercial gold mine, soared by more than 26 per cent yesterday after it said it had widespread support for the project ahead of a key planning decision.

The update came before a meeting next month of the Loch Lomond and the Trossachs National Park Authority board to discuss the application for development of the Cononish mine near Tyndrum. Scotgold had submitted a revised application for the project after the original plan was rejected.

Chief executive Chris Sangster said that the Scottish Environment Protection Agency had raised no objection to the plans and that a “technical” objection by Scottish Natural Heritage could be resolved

“The company has worked hard on the revised application to ensure it was responsive to the objections raised from our original application,” said Sangster.

The firm says that as much as £80 million in economic activity and more than 50 jobs will be created on the back of the development of the mine.

Last month Scotgold raised some £900,000 in a rights issue. Shares closed up 0.95p at 4.58p last night.