Scotgold’s major fundraising plan

THE company aiming to create Scotland’s first commercial gold mine has set out plans to raise AUS$3.4 million (£1.9m) to help realise its ambitions.

A goldmine in Tyndrum. Picture: Donald Macleod.
A goldmine in Tyndrum. Picture: Donald Macleod.

Scotgold Resources said the proceeds from the rights issue would be used to fund mine development studies at its Cononish site near Tyndrum, reduce its debts and provide general working capital.

The fundraising is being fully underwritten by Sandy Littlejohn – who was on Monday named as the firm’s chairman – and non-executive director Nat le Roux.

Littlejohn and Le Roux joined after a boardroom shake-up that saw previous chairman John Bentley resign from the Aim-quoted company and chief executive Chris Sangster step down to a non-executive role.