REG - Scotgold Resources - Short Term Loan Facility

Scotgold ResourcesAnnouncement

03/03/2022 07:00

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RNS Number : 4558D  Scotgold Resources Ltd  03 March 2022

 

03 March 2022

 

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

Provision of Short Term Loan Facility

 

Scotgold Resources Limited (AIM: SGZ), announces that it has entered into a
short term Loan Facility with Bridge Barn Limited ("Bridge Barn") a company
owned and controlled by Nathaniel Le Roux (Non-Executive Director) providing
£250,000 to Scotgold (the "Short Term Loan Facility").

The Short Term Loan Facility has been provided to cover the Company's
immediate working capital requirements which have been impacted by the delay
in shipment of the Company's gold concentrate from port, due to current macro
and geo-political events impacting global shipping lines.  Production and the
Company's mine optimisation plan to ramp up the production profile of its
Cononish gold mine continue to progress in line with management's
expectations.

Short Term Loan Facility

 

The Short Term Loan facility is being provided to SGZ Cononish Ltd (SC569264),
a 100% owned subsidiary of the Company ("Borrower") by Bridge Barn Limited
('Bridge Barn') pursuant to an amendment and extension of the existing
restated facility agreement entered into with Bridge Barn Limited on 1(st)
January 2022. The principal points of the Short Term Loan Facility are as
follows:

 

 Principal:

 £250,000.00
 Borrower:

 SGZ Cononish Ltd, a 100% owned subsidiary of the Company.

 Lender:

 Bridge Barn Ltd, a company incorporated in England and Wales which is wholly
 owned and controlled by Mr Nat le Roux.

 Term:

 Repayable by  the Company within 30 days of the date of drawdown.
 Interest:

 9.0%.

 Security:

 Existing Debenture over the assets and undertakings of all of the assets of
 the Borrower and the Company's wholly owned subsidiary SGZ Grampian Limited
 (SC309525) together with share pledges over the issued share capital of the
 Borrower and SGZ Grampian Limited

 

Related Party transaction:

 

Bridge Barn is a company owned and controlled by Mr Nat le Roux, who is a
Non-executive Director of the Company and a Substantial Shareholder as defined
by the AIM Rules for Companies. The details of the Restructured Loan entered
into by Bridge Barn and the Borrower and the further details as required to
be disclosed under Schedule 4 of the AIM Rules for Companies are provided
above.

 

The provision of the Short Term Loan Facility by Bridge Barn constitutes a
related party transaction pursuant to Rule 13 of the AIM Rules for Companies.
Accordingly, the board of Scotgold, excluding Nat Le Roux who is precluded
from opining consider, having consulted with SP Angel, the Company's nominated
adviser, that the provision of the Short Term Loan Facility is fair and
reasonable insofar as its shareholders are concerned.

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

**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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