Fox Williams advised Scotgold Resources Limited (“Scotgold”) on its rights issue which completed in December 2017 (the “Rights Issue”), raising gross proceeds of approximately £2.66 million.
Scotgold is an Australian incorporated, AIM-listed mining company which offers investors the opportunity to invest in the increasingly attractive gold mining industry through the development of the Cononish Mine in Scotland and exploration in Scotland and other low risk jurisdictions.
In accordance with the terms of the Rights Issue, a total of 5,792,007 allotment rights were taken up, with a further 325,453 shortfall shares being successfully applied for at the offer price of £0.25 per new share. The Rights Issue was underwritten by Nat le Roux, Chairman of Scotgold, who took up a total of 4,508,480 shares pursuant to the underwriting agreement.
The funds raised from the Rights Issue will be applied to the commencement of development of the Cononish Gold and Silver Project (“Cononish Project”) and represent approximately 30% of the total funds required to bring Phase 1 of the Cononish Project into production.
Head of Corporate Richie Clark led the Fox Williams team on the transaction, assisted by senior associate William Li.
David Swan, Scotgold CFO, said “”The rights issue was an exempted transaction under both the Australian and EU regulations. As a result we did not require a full prospectus, however, this brought with it new complications in which we were greatly assisted by Fox Williams. Both the lead partner Richie Clark and senior associate William Li were supportive, available, and constructive throughout the process. It was very gratifying to conclude a low cost fund-raising with legal advisers of the calibre of FW.”
Richie Clark said “We thoroughly enjoyed working with Scotgold to help the company obtain necessary funding to continue to progress Phase 1 of the Cononish Project in 2018.”
