Beleaguered Scotgold Resources, which has been developing Scotland’s only gold mine in Argyll, told the City yesterday that it expected to proceed with an administration process for its SGZ Cononish subsidiary “soon”.
And it declared it was exploring the appointment of administrators in Australia over the group.
Scotgold Resources, which has described itself as “Scotland’s first commercial gold producer” and declared in late September that it had put the majority of its 80-strong workforce at the Cononish mine near Tyndrum on unpaid leave, said on November 7 it was “considering the appointment of administrators over the coming days”.
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The group, which has described itself as “Scotland’s first commercial gold producer”, has in recent years highlighted its ambitions to develop other sites in Scotland.
Providing an update yesterday, it said: “The board are continuing to work with advisors and expect to proceed with an administration process for SGZ Cononish Limited soon.
“In addition, Bridge Barn, who are the secured creditor over the assets of SGZ Cononish Limited, have notified the company that they enforced their rights under the loan agreement signed on 17 May 2018. These include rights over the shares held by the company in SGZ Grampian Limited.”
Scotgold Resources added: “SGZ Cononish Limited and SGZ Grampian Limited represent the only substantive assets of the company and as such the board are also exploring the appointment of administrators in Australia over Scotgold Resources Limited.”
Trading in shares of Scotgold Resources has been suspended since September 11.
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The group poured first gold in November 2020 at the Cononish gold and silver mine near Tyndrum.
Scotgold Resources noted on October 16, when it revealed it was “in advanced discussions with a new strategic investor”, that it was developing Cononish into a “plus-23,500-ounce gold mine per annum”.
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The group said then: “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.”
Scotgold Resources said on November 7 that “unfortunately” the financing discussions it had announced on October 16 “have not resulted in an investment at this time”.
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