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RNS Number : 4257Q
Scotgold Resources Ltd
26 February 2021
Scotgold Resources Limited ("Scotgold" or the "Company)
Retirement of CEO, Board Changes, Production Update and Delay to
the Notification of Interim Results
Scotgold Resources Limited (AIM: SGZ), the gold exploration and
production company focused on Scotland, announces that Richard Gray
has advised the Board of his intention to retire from his executive
role with the Company but will continue to support Scotgold as a
Non-executive Director. Mr Gray, who has led the Company as CEO
since October 2014 and oversaw the Company's successful transition
into a gold miner and producer, will stay in his current role until
31 March 2021 to ensure an orderly transfer of his duties to Mr
Phillip Day. Mr Day is a highly experienced senior mining executive
with a career spanning over 25 years in the mining sector. The
Company intends to appoint Mr Day to the Board and as CEO of the
Company as of 1 April 2021.
Mr Chris Sangster, who was formerly the founding CEO of the
Company, has also tendered his resignation as Non-executive
Director of the Company to pursue other business interests.
Mr Phillip Day
Mr Day most recently held the position Head of Technical and
Operations at Pala Investments ("Pala"), an investment company
focused on the mining sector whilst concurrently holding executive
and non-executive positions of several of Pala's portfolio
companies, namely the Chief Operating Officer and Non-executive
Director at Sierra Rutile Limited and Nevada Copper Corp. Prior to
Pala, Mr Day held the position of Vice President for Process
Engineering at AMEC Americas, and has also previously held
operational, managerial and technical roles for BHP Billiton, WMC
Resources, Minara Resources and Wiluna Gold.
Mr Day graduated from Murdoch University with a Bachelor of
Science in Metallurgy and Chemistry and is a Fellow Member of the
Australian Institute of Mining and Metallurgy (FAusIMM).
Production Update
During February the works earlier identified to prevent crusher
circuit chokes have been successfully completed and the undersized
pumps within the flotation circuit have been replaced with
appropriate vertical spindle pumps. Some issues remain with the
filter press operations and the Company is working with the
manufacturer and its agents to resolve these.
Despite the progress made above, the slower than anticipated
labour build-up and training, due in part to the current COVID-19
restrictions, is expected to impact production at Cononish in
March. As a result, the full planned 24/6 operations are now not
expected before the end of March. The Company intends to utilise
the delay in the ramp-up in production to complete and implement
the results of an ongoing design review of the primary crusher
support structure.
As a result of the reduced operating hours and primary crusher
remediation work, the processing plant is now expected to treat
1,000t of ore in March, reaching design capacity of 3,000tpm from
April onwards. Accordingly the Company is lowering its production
guidance from between 31,500t and 28,400t to between 28,500t and
25,700t of ore processed, and from between 8,700oz Au and 7,800oz
Au to between 7,900oz Au and 7,000oz Au of gold produced.
COVID-19 has had a significant impact on the Cononish Mine's
overall development schedule resulting in a shutdown in 2020,
reduced access to specialist suppliers and consultants from
overseas and most recently delays to the recruitment and training
of new staff. This delayed production build up has had a negative
impact on the Company's cash position. To ensure the Company has
adequate funds available for working capital through this
production ramp up period, the Company is investigating possible
short-term debt financing options including the Coronavirus
Business Interruption Loan Scheme, and the directors are confident
these funds will be available if required. A further update will be
made to shareholders in due course.
Delay to the notification of Interim Results for the six months
ended 31 December 2020
The Board wishes to notify shareholders that pursuant to the
guidance published by the London Stock Exchange in respect of the
temporary measures for the publication of half-yearly reports for
AIM companies pursuant to AIM Rule 18 of the AIM Rules for
Companies, Scotgold intends to utilise the additional one month
period to prepare and notify shareholders of the Company's interim
results for the six months ended 31 December 2020. As such the
Company will release its Interim Results no later than 30 April
2021.
Nat Le Roux, non-executive Chairman, said "Richard has overseen
a transformation at Scotgold from explorer to developer and
ultimately the current ramp up to a production company, following
first gold pour at Cononish on 30 November 2020. Thanks to his
stewardship and service, Cononish will be Scotland's first
commercial gold mine and with this in mind, the Board would like to
take this opportunity to publicly thank Richard for the critical
contribution he has made and we are delighted to have him remain on
the board as a Non-executive Director.
"We also want to give thanks to Chris for his longstanding
service to the Company and in particular his constructive input
through the Company's recapitalisation in 2014. Chris' long history
with Cononish has been a cornerstone in our development.
"We are however thrilled to welcome Phil to the Scotgold team.
Phil's experience developing and optimising the wide range of
operations he has been involved with around the world will prove
invaluable as Scotgold not only executes a phased expansion
strategy at Cononish, but also advances our highly prospective
Grampian Project with a view to developing further new mines."
The following information regarding the appointment of Mr
Phillip Edward Day (Formerly Phillip Edward Day-Banner), aged 47,
is disclosed under Schedule 2(g) of the AIM Rules for
Companies:
Current directorships and/or Former directorships and/or
partnerships: partnerships (within the last
five years):
- Goondincum Resources Pty. Ltd
Melior Resources Inc
Nevada Copper Corp
Sierra Rutile Limited
Mr Day was a director of Melior Resources Inc., ("Melior",
TSX-V: MLR) and its wholly owned subsidiary Goondincum Resources
Pty. Ltd ("Goondincum") from 8 July 2019 until 2 October 2019. On 9
September 2019 Goondincum appointed a voluntary administrator
pursuant to section 436A of the Corporations Act 2001 (Australia)
and as of today's date Goodincum remains in administration.
Upon appointment, Mr Day will be eligible to participate in the
Company's Enterprise Management Incentive Scheme and the Company
intends to grant share incentives to Mr Day pursuant to this scheme
and commensurate to his new role. A further update on this will be
made in due course.
Mr Day does not currently hold any ordinary shares in the
Company.
Other than as provided in this announcement, no other
disclosures in relation to Mr Day are required under Rule 17 and
schedule 2 (g) of the AIM Rules for Companies.
**ENDS**
For further information please contact:
Scotgold Resources Limited Tel: +44 (0)1838 400
Richard Gray 306
SP Angel Corporate Finance Tel +44 (0) 20 3470
LLP 0470
Nomad and Broker
Ewan Leggat / Charlie
Bouverat
Tel +44 (0) 20 7236
St Brides Partners 1177
Financial PR
Susie Geliher / Frank
Buhagiar
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END
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