Fox Williams advised AIM-listed Scotgold Resources, the gold exploration and production company focused on Scotland, on its recent raise of £3 million by way of a placing of 2,727,273 depositary interests of no par value in the Company at a price of 110p per New Ordinary Share (the “Placing”). The proceeds of the Placing will be used to accelerate plans to double production at the Cononish Gold & Silver Mine, (“Cononish”) which is on course to become Scotland’s first commercial gold mine by 30 November 2020. Funds will also be used to increase exploration activities, rolling out Scotgold’s systematic programmes across its 2,900km2 licence portfolio in the Grampian Terrane of Scotland. SP Angel Corporate Finance LLP acted as sole broker to the Placing.
CEO, Richard Gray, commented: “We have an exceptionally exciting few weeks ahead of us as we make final preparations for our first gold pour at Cononish by 30 November. As we ramp up production thereafter, the funds raised today will allow us to commit to the expenditures required to build on this anticipated momentum and accelerate the Phase 2 expansion project, whilst at the same time maintaining prudent cash reserves. With this strong cash balance in place, we have a clear path to realising the significant value that we believe Cononish and our additional prospects offer to investors.”
The Fox Williams team comprised Head of corporate Richie Clark and corporate associate Anjali Aravindhan.
Richie Clark commented: “We were delighted to assist Scotgold on this important fundraising, which will enable production to be accelerated at an exciting time for the company, with Scotgold shortly poised to become Scotland’s first commercial gold mine.”