REG - Scotgold Resources - Subscription and Open Offer GBP2 million raised

Scotgold ResourcesAnnouncement

15/05/2023 07:00

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RNS Number : 3395Z  Scotgold Resources Ltd  15 May 2023

15 May 2023

 

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

Subscription and Open Offer have raised £2 million

Operational Update - Long hole stoping at Cononish gold mine continues to
progress in line with 2023 mine plan

 

Scotgold Resources Limited (AIM: SGZ), Scotland's first commercial gold
producer, announces the results of its Open Offer, which was fully subscribed.
The Open Offer to Qualifying Participants was announced by the Company on 21
April 2023 and closed for acceptances, in accordance with its terms, at 11.00
a.m. on 12 May 2023.

 

The Company is pleased to announce that it has received valid acceptances and
excess applications from Qualifying Participants for a total of 10,755,963
Open Offer Shares under the Open Offer.

 

As a result, the maximum number of a total of 10,065,262 Open Offer Shares
will be issued in connection with the Open Offer, raising £1.5 million.

 

Applications made under the Excess Application Facility will be scaled back
pro-rata such that Qualifying Participants will receive 86.6% of the Excess
Shares they applied for.

 

Capitalised terms used but not otherwise defined in this announcement bear the
meanings ascribed to them in the circular posted to Scotgold shareholders on
26 March 2023.

 

Operational Update

 

As announced on 5 April 2023, the Company commenced long hole stoping, along
the 115m strike length in the underground mine at its Cononish gold and silver
mine ("Cononish"). Long hole stoping is progressing well and for the most
part, aside from lower than expected grade, in line with the Company's 2023
mine plan.

 

1,956 tonnes of ore has been extracted from long hole stope 1 (19m of the 115m
strike length) and all processed as of 3 May 2023, with an average grade of
4g/t. This reduction from previously forecast grade is largely due to internal
dilution as seen in drone footage, dilution from the hanging-wall and footwall
and mucking on backfill. The Company is in the process of completing the
production and geological reconciliation at which point it will have a better
understanding of the factors contributing to the lower than expected grade
performance. Initial reconciliation work of long hole stope 1 indicates the
vein was stoped successfully, with higher-than-expected recovery of the
orebody.  Long hole stoping continues along the 115m strike length in line
with the stope mine design and forecast grades.  The 445 Access has
intersected ore. It is being continued to confirm the extent of any additional
stockwork veins and to produce a stockpile. 445 Ore Drive East has been turned
out and has been established.

 

From 5 April to 30 April, 229 ounces of gold in flotation concentrate has been
produced with 43 tonnes of gold concentrate shipped to the Company's off-take
partner with a sales value of £0.3m.

 

Further Scottish gold doré sales were made to Scottish jewellery companies,
totalling £183,478, from 1 January 2023 to 4 May 2023.

 

As previously disclosed Q1 2023 production was disappointing, with 4,519
tonnes of ore mined at 5.35 g/t which resulted in 758 ounces of gold being
produced in the quarter.

 

Environmental/safety compliance

 

Scotgold is committed to the principles of sustainable and responsible mining
in all aspects of its business. The Company is dedicated to the safety of its
workforce, local communities and that of the National Park in which it
operates. To that end, Scotgold is proud of its no cyanide status, as one of
the only gold producers globally that does not use it in its processing.  The
Company also utilises dry stack tailings to ensure safety and a minimal
environmental footprint of which we continue to remain compliant. Tailings
placement has been completed on Stack 1 with restoration ongoing and approx.
75% complete, all layers in the stack have on spec CQA testing results and
regrowth on the restored areas is very encouraging considering only very
recent placement.

 

The Loch Lomond and Trossachs National Park ("LLNTP") Planning Monitoring
Officer's regular scheduled site visit to Cononish was held on 26 April 2023,
with no major queries or concerns for the period. Scotgold continues to work
with the LLNTP to ensure compliance across all of its operations.

 

The Company can also confirm that there have been no serious health and safety
incidents or LTIs to date in 2023. The Company works in accordance to the UK's
HSC best practice and has a zero-harm safety culture focused on continuous
improvement to achieve an injury free and healthy work environment.

 

 

 

 

 

Outlook

 

Q1 2023 was very challenging for Scotgold. Q2 2023 has started better but the
ability for Scotgold to continue as a going concern is entirely dependent on
the quantity and grade of ore that is produced from now on. The Company has
good visibility on what is expected for the next 3 months and work is underway
on the mining schedule and plans for the balance of 2023 and beyond.

 

The Board of Directors are pleased to announce that Mr. Maurice Mason has
agreed to join the Scotgold Board as a Non-Executive Director, subject to the
usual regulatory approvals and process and a news release will be made in due
course with further details.

 

Director participation in the Open Offer

 

The following Directors, PDMRs and existing shareholders of the Company have
participated in the Open Offer, as follows:

 

 Director/PDMR/Shareholder  Shareholding prior to Open Offer Admission  Open Offer Shares subscribed for  Open Offer Shares allocated  Shareholding following Open Offer Admission
 Nathaniel Le Roux          25,300,474                                  1,666,667                         1,666,667                    26,967,141                                   33.50%
 William Styslinger           6,762,336                                    666,667                           666,667                     7,429,003                                    9.23%
 Peter Hetherington           4,886,974                                    730,046                           730,046                     5,597,020                                    6.95%
 Ian Proctor                  1,323,989                                    284,649                           284,649                     1,608,638                                    2.00%
 Maurice and Nicole Mason     3,990,676                                 3,333,333                         2,898,132                      6,888,808                                    8.56%
 Charles Outhwaite            2,203,672                                    330,550                           330,550                     2,534,222                                    3.15%

 

The notifications below, made in accordance with the requirements of the UK
Market Abuse Regulation, provides further detail.

 

Admission and dealings

 

The Open Offer Share will, when issued, be credited as fully paid and will
rank pari passu in all respects with each other and with the Existing Ordinary
Shares. Application has been made to the London Stock Exchange for the Open
Offer Shares to be admitted to trading on AIM ("Admission"). Settlement and
dealings for the Open Offer Shares and Admission are expected to take place on
or around 8.00 a.m. on 17 May 2023.

 

 

 

Total voting rights

 

Following Admission, the Company will have a total of 80,500,346 Ordinary
Shares in issue, with no Ordinary Shares held in treasury.  Therefore,
following Admission, this figure may be used by shareholders as the
denominator for the calculations by which they determine if they are required
to notify their interest in, or a change in their interest in, the Company
under the Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority.

 

 

**ENDS**

 

For further information please visit www.scotgoldresources.com
(https://url.avanan.click/v2/___http:/www.scotgoldresources.com___.YXAxZTpzaG9yZWNhcDphOm86ODA2YzQwYWQxOTIxNWFmODQ4YmU0ZTI1ZjJkZDgzYWM6Njo2ODUyOjE4MDRkMmI4MTEyZWY1YjE5MzI1OGJhNGMxNjI5YmQ5NDYxMjhhMGYyYmJkMjFhNjQ5YTgxODk2NjZjOGYyNDM6cDpU)
or contact the following:

 

 Scotgold Resources Limited    Shore Capital             Celicourt Communications

 Chief Executive Officer       Nomad and Broker          Financial PR

 Phil Day                      Toby Gibbs / John More    Felicity Winkles/Ariana Fanning

 CFO

 Sean Duffy
 Via Celicourt Communications  Tel +44 (0) 20 7408 4090  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
planned +23,500-ounce gold mine per annum. 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.
The mine has anticipated forecast operating costs of c.£610 per ounce in Q4
2023, 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.

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Peter Hetherington

 2    Reason for the notification

 a)   Position/status                                              Non-Executive Chairman

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Scotgold Resources Limited

 b)   LEI                                                            213800HL5A2K7LW2G360

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                    AU000XINEAK5
 b)   Nature of the transaction                                    Purchase of Ordinary Shares pursuant to Open Offer

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   15p    730,046

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value

 e)   Date of the transactions                                     15 May 2023

 f)   Place of the transaction                                     Outside of a trading venue

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

 

N/A

e)

 

Date of the transactions

 

15 May 2023

 

f)

 

Place of the transaction

 

 

Outside of a trading venue

 

 

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Nathaniel Le Roux

 2    Reason for the notification

 a)   Position/status                                              Non-Executive Director

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Scotgold Resources Limited

 b)   LEI                                                            213800HL5A2K7LW2G360

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                    AU000XINEAK5
 b)   Nature of the transaction                                    Purchase of Ordinary Shares pursuant to Open Offer

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   15p    1,666,667

 

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value

 e)   Date of the transactions                                     15 May 2023

 f)   Place of the transaction                                     Outside of a trading venue

 

 

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

 

N/A

e)

 

Date of the transactions

 

15 May 2023

 

f)

 

Place of the transaction

 

Outside of a trading venue

 

 

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         William Styslinger

 2    Reason for the notification

 a)   Position/status                                              Non-Executive Director

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Scotgold Resources Limited

 b)   LEI                                                            213800HL5A2K7LW2G360

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                    AU000XINEAK5
 b)   Nature of the transaction                                    Purchase of Ordinary Shares pursuant to Open Offer

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   15p    666,667

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value

 e)   Date of the transactions                                     15 May 2023

 f)   Place of the transaction                                     Outside of a trading venue

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

 

N/A

e)

 

Date of the transactions

15 May 2023

 

f)

 

Place of the transaction

 

Outside of a trading venue

 

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Ian Proctor

 2    Reason for the notification

 a)   Position/status                                              Non-Executive Director

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Scotgold Resources Limited

 b)   LEI                                                            213800HL5A2K7LW2G360

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                    AU000XINEAK5
 b)   Nature of the transaction                                    Purchase of Ordinary Shares pursuant to Open Offer

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   15p    284,649

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value
 e)   Date of the transactions                                     15 May 2023

 f)   Place of the transaction                                     Outside of a trading venue

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

N/A

e)

 

Date of the transactions

 

15 May 2023

f)

 

Place of the transaction

Outside of a trading venue

 

 

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