Scotgold Resources Ltd Production and Corporate Update (6524W)
April 27 2021 - 1:00AM
UK Regulatory
TIDMSGZ
RNS Number : 6524W
Scotgold Resources Ltd
27 April 2021
27 April 2021
Scotgold Resources Limited
("Scotgold" or the "Company)
Production and Corporate Update
Scotgold announces an update to the market with regard to its
mine production and processing expectations for the Cononish
Project ("Cononish") and the associated working capital
requirements arising from these.
The Company is pleased to announce that it has resolved the
various outstanding technical issues affecting the processing plant
at Cononish, which is operating consistently and currently
focussing on ramping up to full design capacity expeditiously.
The Company commenced a review of the mine plan for Cononish at
the beginning of April 2021 and it has been concluded that the ramp
up of underground mining production will be slower than originally
planned. Mine development is insufficient for the mine to provide
optimal ore quantity and quality in the short term, however this is
not predicted to have long term impacts. The mine team at Scotgold
has undergone a reshuffle in leadership and approach to ensure it
can deliver reliable and robust short term mine plans. Accordingly,
the Company expects production for calendar year 2021 to be
materially less than the guidance range previously announced on 31
March 2021.
A further update in connection with the ramp-up of production,
including new estimates for ore to be processed and gold to be
produced for the calendar year 2021 will be announced as soon as
the Company has completed the review of the mine plan for
Cononish.
The recent delays to the production ramp-up have had and are
expected to have 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 financing options, including short-term debt
financing from the Directors. A further update will be made to
shareholders in due course.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Scotgold Resources SP Angel Corporate Finance St Brides Partners
Limited LLP Financial PR
Chief Executive Officer Nomad and Broker Susie Geliher / Frank
Philip Day Ewan Leggat / Charlie Buhagiar
Bouverat
Tel +44 (0) 20 3470 0470 Tel +44 (0) 20 7236
1177
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END
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