TIDMSGZ

RNS Number : 5238X

Scotgold Resources Ltd

04 May 2021

04 May 2021

Scotgold Resources Limited

("Scotgold" or the "Company")

Provision of short-term loan funding by Directors

Further to the announcement of 30 April 2021, certain directors of the Company, being Nathaniel le Roux, William "Bill" Styslinger, Peter Hetherington and Ian Proctor, together with an unrelated third party (the "Lenders"), have provided a short-term loan of GBP2 million (the "Director Loan") to SGZ Cononish Limited, a wholly owned subsidiary of the Company referred to hereinafter as "SCL", on the following terms:

 
      Principal:    GBP2,000,000 (two million pounds), to be drawn 
                     down in two tranches of GBP1,000,000 (one million 
                     pounds) each 
      Lenders:      Nathaniel le Roux - Non-Executive Chairman 
                     Peter Hetherington - Non-Executive Director 
                     Bill Styslinger - Non-Executive Director 
                     Ian Proctor - Non-Executive Director 
                     One unrelated third party holding 3.35% of 
                     the issued share capital of the Company 
                  ----------------------------------------------------- 
      Borrower:       SCL 
                  ----------------------------------------------------- 
      Term:           Six months from date of the loan agreement. 
                       Early repayment is at the option of the Borrower 
                       for no penalty. 
                  ----------------------------------------------------- 
      Interest:      No interest is payable on the Director Loan. 
                  ----------------------------------------------------- 
      Security:      There is no security on the Director Loan 
                  -----------------------------------------------------

Bridge Barn Limited, a company owned and controlled by Mr Nathaniel le Roux which has provided a loan facility of GBP7.5 million to SCL secured by a Debenture over all of the assets and undertakings of SCL (including the transfer of security of the issued capital of SCL) has agreed not to enforce its rights under the Debenture for so long as there are any outstanding monies due to the Lenders in terms of the Director Loan.

Related Party Transaction

The provision of the Director Loan constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. Accordingly, the board of Scotgold (excluding those Lenders who are directors of the Company, who are precluded from opining) consisting of Phillip Day, Richard Gray, Philip Jackson and Richard Barker, having consulted with SP Angel, the Company's nominated adviser, consider that the terms of the Director Loan are fair and reasonable insofar as its shareholders are concerned.

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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May 04, 2021 11:49 ET (15:49 GMT)

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