Scotgold raises £800k for mine

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Scotgold Resources has raised almost £800,000 through a share placing and loan extension to develop plans for its Cononish gold mine.

The firm has placed just over 15.3 million new shares at 3.1p each, raising around £475,000. Those taking up the shares have also been issued with an equal number of warrants, which can be exchanged for shares at a price of 4.5p each within 18 months.

Scotgold is seeking about £25m in financing for the Stirlingshire mine, which is expected to generate up to £65m in pre-tax cashflow over its ten-year lifetime. It had already secured £1.18m in funding from RMB Resources, the mining finance arm of South African bank FirstRand, and chairman John Bentley said its loan facility is set to be increased by £320,000.