Scotgold Resources secures £2m funding amid uncertain Q2 outlook
Gold producer Scotgold Resources has concluded its open offer of shares and raised a further £2 million in funding through a fully subscribed open offer of shares and an additional subscription agreement with existing shareholders, Maurice and Nicole Mason.
This comes amidst the company’s ongoing struggle for survival, with its viability hinging on future ore production levels at its Cononish gold and silver mine near Tyndrum on the West Highland Way.
Maurice Mason is set to join the Scotgold board as a non-executive director.
The company also reported on its Q1 2023 operations, noting disappointing results with 4,519 tonnes of ore mined at a grade of 5.35 g/t, resulting in 758 ounces of gold. Despite these challenges, there were positive signs in April, with 229 ounces of gold produced in flotation concentrate and 43 tonnes of gold concentrate sold to the company’s off-take partner for £300,000. Moreover, from January to early May, Scotgold made additional sales of Scottish gold doré to local jewellery companies, totalling £183,478.
Although the second quarter of 2023 has started better, the company reiterated that its survival relies entirely on the quantity and grade of ore produced going forward.