TIDMSGZ
RNS Number : 3395Z
Scotgold Resources Ltd
15 May 2023
15 May 2023
Scotgold Resources Limited ("Scotgold" or the "Company")
Subscription and Open Offer have raised GBP2 million
Operational Update - Long hole stoping at Cononish gold mine
continues to progress in line with 2023 mine plan
Scotgold Resources Limited (AIM: SGZ), Scotland's first
commercial gold producer, announces the results of its Open Offer,
which was fully subscribed. The Open Offer to Qualifying
Participants was announced by the Company on 21 April 2023 and
closed for acceptances, in accordance with its terms, at 11.00 a.m.
on 12 May 2023.
The Company is pleased to announce that it has received valid
acceptances and excess applications from Qualifying Participants
for a total of 10,755,963 Open Offer Shares under the Open
Offer.
As a result, the maximum number of a total of 10,065,262 Open
Offer Shares will be issued in connection with the Open Offer,
raising GBP1.5 million.
Applications made under the Excess Application Facility will be
scaled back pro-rata such that Qualifying Participants will receive
86.6% of the Excess Shares they applied for.
Capitalised terms used but not otherwise defined in this
announcement bear the meanings ascribed to them in the circular
posted to Scotgold shareholders on 26 March 2023.
Operational Update
A s announced on 5 April 2023, the Company commenced long hole
stoping, along the 115m strike length in the underground mine at
its Cononish gold and silver mine ("Cononish"). Long hole stoping
is progressing well and for the most part, aside from lower than
expected grade, in line with the Company's 2023 mine plan.
1,956 tonnes of ore has been extracted from long hole stope 1
(19m of the 115m strike length) and all processed as of 3 May 2023,
with an average grade of 4g/t. This reduction from previously
forecast grade is largely due to internal dilution as seen in drone
footage, dilution from the hanging-wall and footwall and mucking on
backfill. The Company is in the process of completing the
production and geological reconciliation at which point it will
have a better understanding of the factors contributing to the
lower than expected grade performance. Initial reconciliation work
of long hole stope 1 indicates the vein was stoped successfully,
with higher-than-expected recovery of the orebody. Long hole
stoping continues along the 115m strike length in line with the
stope mine design and forecast grades. The 445 Access has
intersected ore. It is being continued to confirm the extent of any
additional stockwork veins and to produce a stockpile. 445 Ore
Drive East has been turned out and has been established.
From 5 April to 30 April, 229 ounces of gold in flotation
concentrate has been produced with 43 tonnes of gold concentrate
shipped to the Company's off-take partner with a sales value of
GBP0.3m.
Further Scottish gold doré sales were made to Scottish jewellery
companies, totalling GBP183,478, from 1 January 2023 to 4 May
2023.
As previously disclosed Q1 2023 production was disappointing,
with 4,519 tonnes of ore mined at 5.35 g/t which resulted in 758
ounces of gold being produced in the quarter.
Environmental/safety compliance
Scotgold is committed to the principles of sustainable and
responsible mining in all aspects of its business. The Company is
dedicated to the safety of its workforce, local communities and
that of the National Park in which it operates. To that end,
Scotgold is proud of its no cyanide status, as one of the only gold
producers globally that does not use it in its processing. The
Company also utilises dry stack tailings to ensure safety and a
minimal environmental footprint of which we continue to remain
compliant. Tailings placement has been completed on Stack 1 with
restoration ongoing and approx. 75% complete, all layers in the
stack have on spec CQA testing results and regrowth on the restored
areas is very encouraging considering only very recent
placement.
The Loch Lomond and Trossachs National Park ("LLNTP") Planning
Monitoring Officer's regular scheduled site visit to Cononish was
held on 26 April 2023, with no major queries or concerns for the
period. Scotgold continues to work with the LLNTP to ensure
compliance across all of its operations.
The Company can also confirm that there have been no serious
health and safety incidents or LTIs to date in 2023. The Company
works in accordance to the UK's HSC best practice and has a
zero-harm safety culture focused on continuous improvement to
achieve an injury free and healthy work environment.
Outlook
Q1 2023 was very challenging for Scotgold. Q2 2023 has started
better but the ability for Scotgold to continue as a going concern
is entirely dependent on the quantity and grade of ore that is
produced from now on. The Company has good visibility on what is
expected for the next 3 months and work is underway on the mining
schedule and plans for the balance of 2023 and beyond.
The Board of Directors are pleased to announce that Mr. Maurice
Mason has agreed to join the Scotgold Board as a Non-Executive
Director, subject to the usual regulatory approvals and process and
a news release will be made in due course with further details.
Director participation in the Open Offer
The following Directors, PDMRs and existing shareholders of the
Company have participated in the Open Offer, as follows:
Director/PDMR/Shareholder Shareholding Open Offer Open Shareholding
prior to Shares Offer following
Open Offer subscribed Shares Open Offer
Admission for allocated Admission
Nathaniel Le Roux 25,300,474 1,666,667 1,666,667 26,967,141 33.50%
------------- ------------ ----------- ------------- -------
William Styslinger 6,762,336 666,667 666,667 7,429,003 9.23%
------------- ------------ ----------- ------------- -------
Peter Hetherington 4,886,974 730,046 730,046 5,597,020 6.95%
------------- ------------ ----------- ------------- -------
Ian Proctor 1,323,989 284,649 284,649 1,608,638 2.00%
------------- ------------ ----------- ------------- -------
Maurice and Nicole
Mason 3,990,676 3,333,333 2,898,132 6,888,808 8.56%
------------- ------------ ----------- ------------- -------
Charles Outhwaite 2,203,672 330,550 330,550 2,534,222 3.15%
------------- ------------ ----------- ------------- -------
The notifications below, made in accordance with the
requirements of the UK Market Abuse Regulation, provides further
detail.
Admission and dealings
The Open Offer Share will, when issued, be credited as fully
paid and will rank pari passu in all respects with each other and
with the Existing Ordinary Shares. Application has been made to the
London Stock Exchange for the Open Offer Shares to be admitted to
trading on AIM ("Admission"). Settlement and dealings for the Open
Offer Shares and Admission are expected to take place on or around
8.00 a.m. on 17 May 2023.
Total voting rights
Following Admission, the Company will have a total of 80,500,346
Ordinary Shares in issue, with no Ordinary Shares held in treasury.
Therefore, following Admission, this figure may be used by
shareholders as the denominator for the calculations by which they
determine if they are required to notify their interest in, or a
change in their interest in, the Company under the Disclosure
Guidance and Transparency Rules of the Financial Conduct
Authority.
**S**
For further information please visit www.scotgoldresources.com
or contact the following:
Scotgold Resources Shore Capital Celicourt Communications
Limited
Nomad and Broker Financial PR
Chief Executive Officer
Toby Gibbs / John More Felicity Winkles/Ariana
Phil Day Fanning
CFO
Sean Duffy
Via Celicourt Communications Tel +44 (0) 20 7408 4090 Tel +44 (0) 208 434
2643
Tel +44 (0) 774 8843
871
Notes
Scotgold Resources Ltd (AIM:SGZ), is Scotland's first commercial
gold producer. The Company poured first gold in November 2020 at
its Cononish Gold and Silver Mine ('Cononish) in Tyndrum, Scotland
and is developing it into a planned +23,500-ounce gold mine per
annum. Cononish is a high-grade underground mining operation with a
central processing plant producing gold concentrate for off-take
and gold doré for the Scottish Jewellery industry. The mine has
anticipated forecast operating costs of c.GBP610 per ounce in Q4
2023, which will place Cononish in the lowest quartile of gold
mining operations globally.
It is Scotgold's vision to build a mid-tier gold mining company
in Scotland with multiple operations in the country that enhance
the local environment and economy in ways that have an enduring
positive impact.
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Peter Hetherington
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Chairman
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of Ordinary Shares pursuant
to Open Offer
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
15p 730,046
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 15 May 2023
--------------------------- --------------------------------------
f) Place of the transaction Outside of a trading venue
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Nathaniel Le Roux
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of Ordinary Shares pursuant
to Open Offer
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
15p 1,666,667
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 15 May 2023
--------------------------- --------------------------------------
f) Place of the transaction Outside of a trading venue
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name William Styslinger
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of Ordinary Shares pursuant
to Open Offer
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
15p 666,667
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 15 May 2023
--------------------------- --------------------------------------
f) Place of the transaction Outside of a trading venue
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Ian Proctor
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of Ordinary Shares pursuant
to Open Offer
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
15p 284,649
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 15 May 2023
--------------------------- --------------------------------------
f) Place of the transaction Outside of a trading venue
--------------------------- --------------------------------------
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