REG - Scotgold Resources - Debt Funding Procurement Agreement

Scotgold ResourcesAnnouncement

07/04/2022 07:00

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RNS Number : 5304H  Scotgold Resources Ltd  07 April 2022

 

  7 April 2022

 

Scotgold Resources Limited ("Scotgold" or the "Company")

Debt Funding Procurement Agreement

 

Scotgold Resources Limited (AIM: SGZ), announces that it has entered into an
agreement with Fern Wealth GmbH to arrange the procurement of loan funding
from a syndicate of high net worth investors for an amount up to £3 million
(the "New Loans"). Fern Wealth is a sophisticated wealth management company
based in Zug, Switzerland whose focus is to seek out and manage quality
investment opportunities for their Investors.

Subject to the successful procurement of the New Loans, the Company intends to
use the proceeds received to fast-track the Company's Optimisation Initiatives
to achieve a gold production run rate of c.23,500oz p.a. by the end of Q1
2023. Further announcements will be made in due course.

The core Optimisation Initiatives planned for 2022 include:

·    Design, construct, and commission a tailings thickener, a
cost-effective technology to improve the throughput and recoveries of
concentrate product in the processing plant to achieve a monthly run rate of
c. 4,000 feed tonnes to the process plant by end of Q2 2022 which equates to c
16,000 - 17,500 ounces p.a. run rate of gold by the end of Q2 2022.

·    Enhancing mining efficiencies of the underground mine to ensure
continuous operations; and

·    Design, construct, and commission an ore sorter at the processing
plant between the existing crushing unit and the Mill to realise an increase
in ounces of gold processed per tonne at lower tonnages and potentially lower
CAPEX and OPEX. Due diligence to be completed by the end of Q2 2022 and the
sorter, if approved, to be operational by the end of Q1 2023.

The information contained within this Announcement is deemed by the Company to
constitute inside information as stipulated under Article 7 of the Market
Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the
domestic law of the United Kingdom by virtue of the European Union
(Withdrawal) Act 2018 (as amended). Upon the publication of this Announcement
via the Regulatory Information Service, this inside information is now
considered to be in the public domain.

**ENDS**

 

 Scotgold Resources Limited  SP Angel Corporate Finance LLP   Celicourt Communications

 Chief Executive Officer     Nomad and Broker                 Financial PR

 Philip Day                  Ewan Leggat / Charlie Bouverat   Felicity Winkles

                             Tel +44 (0) 20 3470 0470         Tel +44 (0) 208 434 2643

                                                              Tel +44 (0) 774 8843 871

 

 

Notes

 

Scotgold Resources Ltd (AIM:SGZ), is Scotland's first commercial gold
producer. The Company poured first gold in November 2020 at its Cononish Gold
and Silver Mine ('Cononish) in Tyndrum, Scotland and is developing it into a
+23,500-ounce gold mine per annum by end of Q1 2023. Cononish is a high-grade
underground mining operation with a central processing plant producing gold
concentrate for off-take and gold doré for the Scottish Jewellery industry.
Once in full production, the mine has anticipated forecast operating costs of
c.£544/oz AISC, which will place Cononish in the lowest quartile of gold
mining operations globally.

 

It is Scotgold's vision to build a mid-tier gold mining company in Scotland
with multiple operations in the country that enhance the local environment and
economy in ways that have an enduring positive impact.

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