TIDMSGZ
RNS Number : 2443W
Scotgold Resources Ltd
13 November 2017
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM THE USA, CANADA, JAPAN OR ANY OTHER
JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION
13 November 2017
SCOTGOLD RESOURCES LIMITED
(The "Company" or "Scotgold")
Rights Issue and Funding Update for commencement of development
of Cononish Gold and Silver Project ("Cononish Project").
Highlights:
-- Fully underwritten Two for Three Rights Issue at GBP0.25 per New Share to raise GBP2.65m.
-- One free attaching Option to every Five New Shares.
-- Cononish Project predevelopment works to commence from
December 2017, to coincide with completion of the Bulk Process
Trial.
-- Cononish Project development to commence in January 2018
subject to planning permission, which is being constructively
advanced.
-- A second and final tranche of development funding to be
raised after the planning decision has been received.
Capitalised terms used in this announcement have the same
meaning as defined in the Offer Information Statement unless
otherwise stated.
Rights Issue and Funding Strategy
Scotgold is pleased to announce that Nat le Roux, the Company's
Chairman has fully underwritten a non-renounceable Rights Issue
offering Two (2) New Shares for every Three (3) Existing Shares
held on the Record Date, at an issue price of GBP0.25 per New
Share, together with One (1) free attaching New Option (exercisable
at GBP0.40 on or before 31 December 2019) for every Five (5) New
Shares subscribed for (the "Offer").
An Offer Information Statement ("OIS") was lodged today with the
Australian Securities and Investment Commission ("ASIC"). The full
OIS will also be made available on the Company's website
www.scotgoldresources.com, the details of which are summarised
below. The OIS, together with an Entitlement and Acceptance Form
will be mailed to all Eligible Shareholders, where appropriate.
The funds to be raised from the Offer are to be applied to the
commencement of development of the Cononish Gold and Silver Project
("Cononish Project") and represent approximately 30% of the total
funds required to bring Phase 1 of the Cononish Project into
production.
The Company's strategy in raising a first tranche of funds at
this time, is clear. In mid-December, the Company's Bulk Processing
Trial ("BPT") will have substantially depleted the existing
stockpile and the operations will be concluded. With BPT operations
terminated, labour and management resources will be re-deployed and
focussed directly into the Cononish Project preparatory works. The
outcome of the Company's Planning Application is expected in
mid-December 2017. It should be noted, the Company currently still
has the option to commence development of the Cononish Project
under its full-scale development programme, for which planning
permission has previously been granted.
Assuming a successful Planning Application determination and
subject to any conditions attached, a second and larger tranche of
funding, potentially as a combination of equity, debt and vendor
(equipment lease) finance, is planned in early 2018. By this time,
it is anticipated the predevelopment works will have been
completed, the recruitment of key project personnel will be well
advanced and equipment and construction contracts will have been
tendered, further reducing uncertainty.
After successful implementation of Phase 1 of the Cononish
project, management will consider the timing of the Phase 2
expansion, which it is anticipated will be funded through
internally generated cashflow. Any funds received before 31
December 2019 from the exercise of the Options included in the
Offer may enable the timing of Phase 2 to be brought forward.
Refer further details, below.
Scotgold CEO, Richard Gray said:
"As well as providing our current shareholders with an
opportunity to further participate in the low capex, high return
phased Cononish Project, this Rights Issue will enable us to start
development activities as soon as the necessary permitting is in
place. The final tranche of funding can then be concluded in
parallel with this work, early in the new year, at a more
appropriate stage of the project's development. This exciting shift
in operational focus means we will be progressing the Cononish
Project to production in a timely manner."
For further information please contact:
Scotgold Resources Stockdale Securities Capital Markets Smaller Company
Limited Limited Consultants Capital
Ltd
------------------- --------------------- ----------------- ----------------
Richard Gray Robert Finlay/ Simon Rothschild Rupert Williams
- CEO Ed Thomas
------------------- --------------------- ----------------- ----------------
Tel: +44 (0)1838 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44
400 306 7601 6100 167 065 (0)20 3651
2911
------------------- --------------------- ----------------- ----------------
1 SUMMARY
It is proposed that the closing date for the Offer will be
5:00pm (WST) on 8 December 2017. The Directors reserve the right to
extend this date without notice.
Eligible Shareholders may also apply for additional Shortfall
Shares which may arise from the Offer. In the event, that the
Shortfall Shares are not taken up in full by Eligible Shareholders,
the Shortfall Shares will be offered to eligible third parties
(provided that such eligible third parties are Relevant Persons).
The Company's Chairman and major shareholder, Mr Nat le Roux, has
agreed to fully underwrite the Offer and so ensure that the Company
raises the full GBP2,656,485.
The principal purpose of this Rights Issue is to raise the first
tranche of funding required for the commencement of development of
the Cononish Project, subject to Planning permission as well as to
advance the Grampian Exploration Project. A portion of the funds
raised will be used for working capital purposes during the period
up until completion of the full funding strategy.
The Directors are cognisant that the outcome of the current
revised Planning Application has not yet been determined and is not
expected until mid-December 2017. The current revised Planning
Application includes the revised "dry stack" tailings system and
the phasing of the Cononish Project, allows for a lower capital
cost to complete the first production phase followed by a
subsequent expansion to the currently permitted production levels.
If planning permission is granted, the revised, phased Cononish
Project development will substantially reduce the capital
expenditure from the currently permitted development plan. Scotgold
management have actively responded to all requisitions and queries
from the Loch Lomond and Trossachs National Park Planning Authority
and other consultees.
The Company is currently planning for the balance of funding
required for the Cononish Project development to be raised as a
combination of equity, debt and vendor (equipment lease) finance.
The timing of this second and more significant tranche of funding
is planned to be raised in March / April 2018, by which time the
Planning Application will have been determined and progress with
the commencement of development of the Cononish Project will be
well advanced.
2 RELATED PARTY TRANSACTION
The Underwriting Agreement to the Offer sets out that the Offer
is fully underwritten by Nat le Roux, a Director and substantial
shareholder of the Company. This constitutes a related party
transaction under Rule 13 of the AIM Rules.
The Directors of Scotgold, excluding Nat Le Roux who is
precluded from opining, having consulted with the Company's
nominated adviser, Stockdale Securities, consider that the terms of
the Underwriting Agreement are fair and reasonable insofar as
Shareholders are concerned. The Directors have given consideration
to the fact that Mr le Roux is not receiving an underwriting fee
and is otherwise subscribing for Shares at the same issue price as
other shareholders of the Company. Mr le Roux is the sole
underwriter of the Rights Issue.
The terms of the Underwriting Agreement are that no underwriting
fees will be charged and that the New Shares not taken up by
Eligible Shareholders will be offered to those shareholders who
have subscribed for Shortfall Shares and other eligible third
parties, at the discretion of the Directors. Any remaining
Shortfall Shares offered under the Shortfall Offer will then be
taken up by Mr le Roux, as underwriter, on the same terms as
offered to all other shareholders.
If no other Eligible Shareholders subscribed for their New
Shares and no eligible third parties or Relevant Persons subscribed
for any Shortfall Shares, then the maximum number of shares that
could be taken up by Mr le Roux is 10,625,490 Shares (including Mr
le Roux's entitlement of 4,214,806 New Shares). This would increase
his percentage shareholding from 39.67% to 63.80% of the enlarged
share capital of the Company following completion of the Offer. On
the same basis that no other Eligible Shareholder subscribed for
their New Shares and no eligible third parties or Relevant Persons
subscribed for any Shortfall Shares then, on a fully diluted basis,
his percentage shareholding would increase from 39.67% to
66.41%.
3 DETAILS OF THE RIGHTS ISSUE
The Offer
The Company is making an Offer to Eligible Shareholders by way
of a Rights Issue. The offer price of GBP0.25 for each New Share is
payable in full on acceptance of the Offer.
Each Eligible Shareholder is entitled to subscribe for Two (2)
New Shares for every Three (3) Existing Shares which the
Shareholder holds, together with One (1) free attaching New Option
(exercise price GBP0.40 and expiry 31 December 2019) for every Five
(5) New Shares subscribed for.
The New Options will be unlisted and no application will be made
for them to be admitted to trading on AIM or any other stock
exchange. The Options will not be transferable, and will be held in
certificate form.
Where an Eligible Shareholder holds their shareholding in
certificated form, the number of New Securities to which Eligible
Shareholders are entitled will be shown on the Entitlement and
Acceptance Form which will be sent to each Eligible Shareholder
together with the OIS.
Where the Eligible Shareholder holds their shareholding in
uncertificated form (i.e. via Depositary Interests in CREST), the
number of Basic Entitlements and Excess Entitlements to which the
Eligible Shareholder is entitled shall be credited their CREST
stock account.
Fractional entitlements to New Securities have been rounded up
to the nearest whole number of Securities.
The Board also invites all Eligible Shareholders to apply for
Shortfall Securities in addition to their entitlement. If such
application for Shortfall Shares in aggregate exceeds the number
Shortfall Shares available, the Board will, in its sole discretion,
allocate the available Shortfall Shares, giving due regard to the
quantum of the Eligible Shareholders' holding and quantum of the
Shortfall Shares applied for.
Other than the issue price of GBP0.25 per New Share there are no
other fees or charges payable to receive New Securities.
The Offer will be underwritten by Nat le Roux, the Company's
Non-Executive Chairman.
Entitlements to New Securities are non-renounceable. This means
that Eligible Shareholders are not able to renounce (sell) their
Entitlements which they do not wish to accept.
Eligible Shareholders who wish to subscribe for New Shares under
this Offer should ensure that their payment is sent for the correct
amount in GBP Pounds Sterling, or equivalent, in sufficient time
for it to be received and cleared funds available by the Closing
Date of the Offer.
Offer Price
The Offer Price has been determined by the Company having regard
to historical issues of Shares, the Company's financial history and
operating conditions and by acknowledging the ongoing support of
the Shareholders.
The Offer Price represents a discount of approximately 7.4 per
cent. to the Company's closing share price on AIM of GBP0.27 on 10
November 2017, the last trading day prior to the printing of the
OIS.
Use of Funds
The maximum amount that will be raised pursuant to the Offer
will be approximately GBP2,656,485. As at the date of the OIS, the
Company intends to use the funds raised as set out below.
Item Use of Funds (GBP) %
----- ----------------------------------- ------------- -------
Commencement of development
1. of Cononish Project(1) GBP2,070,000 77.92%
----- ----------------------------------- ------------- -------
2. Grampian Gold Project(2) GBP70,000 2.64%
----- ----------------------------------- ------------- -------
3. Working capital GBP466,485 17.56%
----- ----------------------------------- ------------- -------
4. Costs of the Offer (approximately) GBP50,000 1.88%
----- ----------------------------------- ------------- -------
Total GBP2,656,485 100%
----- ----------------------------------- ------------- -------
Notes:
1 Initial Cononish Project expenditure is expected to include:
Expenditure Item Amount Spent
------------------------------- -------------
Access infrastructure (Access GBP210,000
bridge, parking areas etc.)
------------------------------- -------------
Buildings and groundworks GBP480,000
------------------------------- -------------
Environmental, planning and GBP860,000
community
------------------------------- -------------
Crown Estate (Scotland) GBP75,000
------------------------------- -------------
Mine equipment GBP325,000
------------------------------- -------------
Project labour GBP120,000
------------------------------- -------------
TOTAL 2,070,000
------------------------------- -------------
2 Initial Grampian Expenditure is expected to include:
Expenditure Item Amount Spent
------------------------------------ -------------
Cononish / Glen Orchy (Core GBP25,000
management, selective relogging
and stratigraphic modelling)
------------------------------------ -------------
Consultants (determination of GBP5,000
orientation programs)
------------------------------------ -------------
Orientation surveys (soil sampling, GBP40,000
drainage sampling, 2D or 3D
induced polarisation)
------------------------------------ -------------
TOTAL Grampian Gold Project GBP70,000
------------------------------------ -------------
The above table is a statement of present intentions as at the
date of this announcement and the OIS. As with any budget,
intervening events and new circumstances have the potential to
affect the manner in which the funds are ultimately applied. The
Board of Scotgold reserves the right to alter the way funds are
applied. It is also intended that initial Cononish Project
expenditure will include equipment purchases, however, these are
likely to be vendor (lease) financed.
The Board of Scotgold notes that the Company currently has an
outstanding loan of GBP1m which is payable by 30 March 2018 (the
"Loan"). It is currently anticipated that the Loan will be repaid
or restructured as part of the Company's future funding plan but in
the event that this plan has not been completed before 30 March
2018, part of the funds raised in this Rights Issue may be applied
for this purpose.
Costs of the Offer
The Company shall pay for the costs associated with the Offer.
Costs associated with the Offer are estimated to be approximately
GBP50,000 and are expected to include the following:
-- ASIC fees (GBP1,411);
-- Share Registry fees and disbursements (GBP10,000);
-- Professional adviser fees (GBP36,000);
-- Printing and miscellaneous fees (GBP2,589).
Effect of the Offer on Scotgold
The principal effects of the Offer will be to:
(a) raise approximately GBP2,656,485 before deducting the
expenses of the Offer, to be expended by the Company in line with
the use of funds outlined above; and
(b) increase the number of Shares in issue from 15,938,909 to up
to 26,564,849 and the number of Options in issue from 30,000 to
2,155,188 is subject to rounding.
(c) The cash position of the Company at 30 September 2017 was
approximately GBP62,000. Upon completion, the Offer proceeds of
approximately GBP2,656,485 will increase the cash position.
Effect on Capital Structure
The effect of the Offer on the capital structure of the Company,
assuming all Entitlements are accepted, and no existing Options are
exercised prior to the Record Date, is set out below.
Shares
Number
---------------------------------------- -----------
Shares currently in issue(1) 15,938,909
---------------------------------------- -----------
Shares to be offered pursuant to
the Offer(2) 10,625,940
---------------------------------------- -----------
Total Shares in issue after completion
of the Offer 26,564,849
---------------------------------------- -----------
Notes:
1 This assumes that the Company will have issued 1,575 shares
related to an exercise of options which expired on 30 September
2017 and no further options will be exercised prior to the Record
Date. Any exercise will dilute the interests of existing
Shareholders.
2 The number of Shares actually issued after completion of the
Offer will be subject to rounding.
Options
Number
---------------------------------------- ----------
Options currently in issue
(Expiry date of 31 March 2022 and
exercise price of GBP4.71(3) ) 30,000
---------------------------------------- ----------
Options to be offered pursuant to
the Offer(1)(2)
(Expiry date of 31 December 2019
and exercise price of GBP0.40) 2,125,188
---------------------------------------- ----------
Total Shares in issue after completion
of the Offer 2,155,188
---------------------------------------- ----------
Notes:
1 The number of Options actually issued after completion of the
Offer will be subject to rounding.
2 Issued on the terms and conditions set out in Section 1.17 of the OIS.
3 The exercise price of the existing Options is AUD$8.00 which
has been converted into Pounds Sterling at the AUD/GBP exchange
rate published by the Reserve Bank of Australia on 3 November
2017.
Annual Financial Report
The Company's audited Annual Financial Report for the financial
year ending 30 June 2017 should be read in conjunction with the
Offer and is available on the Company's website:
www.scotgold.com.
Eligible Shareholders
To qualify for the Rights Issue, a Shareholder must be
registered as a Shareholder at 5.00pm (WST) on the Record Date.
With the exception of any breach of regulatory provisions,
Eligible Shareholders may, in addition to their Entitlement, apply
for Shortfall Shares.
No action has been taken to permit the offer of New Securities
under the OIS in any jurisdiction other than Australia and United
Kingdom. The distribution of the OIS in any jurisdiction other than
Australia and United Kingdom may be restricted by law and therefore
persons into whose possession this document comes should seek
advice on and observe any such restrictions. Any failure to comply
with these restrictions may constitute a violation of applicable
securities laws. This The OIS does not constitute an offer of New
Securities in any jurisdiction where, or to any person to whom, it
would be unlawful to issue the OIS.
Effect of Offer on the control of the Company
If all Entitlements are accepted by Shareholders to the full
extent, then the Offer will not result in any change to the control
of the Company. If all Entitlements under the Offer are not
accepted to the full extent, then the shareholding interest of
non-participating Shareholders will be diluted.
The Offer is underwritten by the Company's largest Shareholder,
Mr Nat le Roux. As at the date of the OIS, Mr le Roux holds
6,322,208 Shares, which equals a 39.67% voting power in the
Company. There are no other substantial Shareholders, holding more
than 5% interest in the Company.
Where no other Eligible Shareholders and/or Relevant Persons
apply under the Offer and Mr le Roux is obligated pursuant to the
Underwriting Agreement, to subscribe for additional Shares, Mr le
Roux's voting power in the Company will increase. The table below
shows the potential effects of Mr le Roux taking up his Entitlement
and being required to subscribe for the Shortfall in accordance
with the Underwriting Agreement under various scenarios.
If Offer If Offer If Offer If Offer
is fully is 25% unsubscribed is 75% unsubscribed fully unsubscribed
subscribed by shareholders by shareholders other than
other than other than Nat le Roux.
Nat le Roux Nat le Roux
--------- -------------------- ----------------------- ----------------------- ----------------------
Share Shares Voting Shares Voting Shares Voting Shares Voting
holder power power Power Power
(%) (%) (%) (%)
--------- ----------- ------- ------------- -------- ------------- -------- ------------- -------
Nat le
Roux 10,537,014 39.67% 12,139,798 45.70% 15,345,365 57.77% 16,948,148 63.80%
--------- ----------- ------- ------------- -------- ------------- -------- ------------- -------
Notes:
This table assumes that:
a. Nat le Roux will take up his full Entitlement as to 4,214,806 New Shares (GBP1,053,702); and
b. Nat le Roux will fully underwrite the Offer by subscribing
for any Shortfall Securities not subscribed for by Eligible
Shareholders and/or Relevant Persons pursuant to the Shortfall
Offer, (with allocations to be determined at the discretion of the
Board and Underwriter)
The number of Shares held by the above Shareholder and his
voting power in the tables above show the potential effect of the
Offer on the Company. However, the Company considers it is unlikely
that no Eligible Shareholders, other than the above Shareholder,
will take up Entitlements under the Offer. The voting power of Nat
le Roux will reduce by a corresponding amount for the amount of
Entitlements under the Offer taken up by the other Eligible
Shareholders or any Shortfall Shares that are issued to Relevant
Persons.
Depending on the percentage voting rights held by Nat le Roux
following any underwriting by him after the closing of the Offer
(and the Shortfall Offer), the Company intends to enter into a
relationship agreement with Mr le Roux with a view to ensuring that
the Company will at all times be capable of carrying on its
business independently of Mr le Roux. Such relationship agreement
would contain customary provisions for relationship agreements
entered into by AIM-listed companies.
Director participation
Nat le Roux (Chairman and Non-Executive Director) intends to
take up his full Entitlements as to 4,214,806 New Shares
(GBP1,053,702) before any obligation pursuant to the Underwriting
Agreement. Mr le Roux is not eligible to apply for any Shortfall
Shares.
Richard Gray (Managing Director and CEO) intends to take up his
full Entitlement as to 34,670 New Shares (GBP8,668).
Chris Sangster (Non-Executive Director) has indicated that he
will be participating in the Offer, however is uncertain as to the
level of such participation. Mr Sangster currently holds 182,045
Shares in the Company and as such is entitled to subscribe for
121,364 New Shares (GBP30,341) pursuant to the Offer.
Phillip Jackson (Non-Executive Director) has indicated that he
may elect to participate in the Offer. Mr Jackson currently holds
43,313 Shares in the Company and as such is entitled to subscribe
for 28,876 New Shares (GBP7,219) pursuant to the Offer.
Richard Barker (Non-Executive Director and Company Secretary)
holds no shares in the Company.
Timetable
Lodgement of OIS with ASIC and 13 November
Announcement of Offer 2017
Exposure (ASIC review) period ends 21 November
2017
Record Date 21 November
(date for determining entitlements 2017
of Eligible Shareholders to participate
in the Rights Issue as at 5:00pm
(WST))
(date for determining entitlements
of eligible Depositary Interest
Holders to participate in the Rights
Issue as at 6:00pm (GMT))
Shares marked "ex-rights" by London 22 November
Stock Exchange 2017
Offer document dispatched to shareholders 23 November
(expected date of dispatch of Offer 2017
document, entitlement acceptance
forms)
Offer and Shortfall Offer Open 23 November
2017
Offer and Shortfall Offer Closing 8 December 2017
Date*
for Eligible Shareholders (5.00pm
(WST)); and
for Eligible Depositary Interest
Holders (11.00am (GMT)
Shortfall Offer closing date* 10 December
for eligible third parties (5.00pm 2017
(WST)
Result of Rights Issue and total 14 December
shares in issue Announcement 2017
Issue date of Securities 19 December
2017
AIM Admission date and CREST accounts 22 December
credited for Depositary Interests 2017
(indicative)
* Subject to the AIM Rules, the Directors reserve
the right to extend the Closing Date for the
Offer and the Shortfall Offer, at their discretion.
Should this occur, the extension will have a
consequential effect on the anticipated date
of issue for the Securities.
Each of the times and dates in the above timetable
is subject to change. If any of the above times
and/or dates change, the revised times and/or
dates will be notified to Shareholders by announcement
on a Regulatory Information Service.
Total Voting Rights
Application will be made for the 10,625,940 New Shares to be
admitted to trading on AIM ("Admission"). Admission is expected to
take place on 22 December 2017. Following Admission, and subject to
no other new shares in the Company being issued in the meantime
from the exercise of options or any other event, the total number
of shares in issue will be 26,564,849. The Company does not hold
any Shares in treasury and this figure may be used by shareholders
in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest in, the share capital of the
Company under the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules. The New Shares will rank pari passu with
the Company's existing issued ordinary shares.
4 ABOUT SCOTGOLD
Cononish Gold and Silver Project
On 15th February 2012, the board of the Loch Lomond and the
Trossachs Parks issued a decision letter granting planning
permission for the development of the Cononish Project. The Crown
Estate Commissioners unconditional grant of the Crown Lease was
confirmed in May 2012.
During 2014, the Company made an application to vary this
planning permission (relating to hours of operation of the
processing plant and work on site) and on 24 January 2015, the
Board of the Loch Lomond and the Trossachs National Park again
voted unanimously to approve the Company's application. As a
variation to a condition of the existing consent, this approval
also had the effect of extending the date by which development
should commence, to January 2018.
In January 2015, the Company completed a Mineral Resource
Estimate and subsequently, in August 2015 completed a Bankable
Feasibility Study for the Cononish Project. On 24 February 2016 the
Company announced its intention to conduct a Bulk Processing Trial
("BPT") and on 27 August 2016 the first official gold pour from the
BPT was announced. At 31 October 2017, the BPT had produced a
cumulative total of approximately 628 ounces of gold.
Experience from the BPT led to a reassessment of the tailings
disposal methodology and a study was conducted to determine the
suitability of dry stack tailings disposal for the Cononish
Project. The benefits of the dry stack system include substantially
reduced upfront capital costs, scaleability and the potential for
significant environmental benefits. The study determined that dry
stacking was feasible and a number of options using this
methodology were then modelled in the Update to the Bankable
Feasibility Study which was released on 15th March 2017. In line
with ongoing finance discussions, a 'phased' approach was
determined as the Company's preferred option to take the project
forward.Subsequently, the Company has submitted a revised
application for planning permission to incorporate the new tailings
disposal methodology. The application has been accepted as valid by
the Parks Board and its decision is expected around the end of
2017.
Grampian Gold Project
The Grampian Gold Project comprises various Crown Option
agreements covering some 4100 km(2) in the south west Grampians of
Scotland and covers some of the most prospective areas of the
Dalradian geological sequence in the United Kingdom. This sequence
extends westward from the United Kingdom to the eastern seaboard of
Canada and the Appalachian belt in the United States, and eastward
into Sweden and Norway, has been identified by the British
Geological Survey as being highly prospective for both significant
gold and base metal deposits. On a more local scale, the Dalradian
sequence extends to the south west from Scotland into Northern
Ireland where it hosts other gold resources at Cavancaw (c. 0.8Moz
of gold) and Curraghinalt (c. 4M oz of gold).
The Company continues a regional stream sediment sampling
program over the wider Grampian Gold Project area whilst evaluating
a number of previously identified high grade outcrops in the
vicinity of the Cononish Project.
Portuguese and French projects
In May 2016, the Company announced the acquisition of the Pomar
licence area in eastern central Portugal by its wholly owned
Portuguese subsidiary, Scotgold Resources Portugal Ltda. In May
2017, the Company's wholly owned French subsidiary, SGZ France SAS
was granted the Vendrennes PER (Permit Exclusif de Recherche /
exclusive exploration licence) in France.
The Company continues to pursue the economic exploitation of its
Portuguese and French held projects, whether that be by way of
further exploration and development, joint venture, farm-in,
earn-in, or other arrangement. With respect to these projects,
discussions have been held with interested parties, but no
agreement has been reached.
Forward Looking Statement
Statements regarding plans with respect to the Company's mineral
properties and funding strategies are forward-looking statements.
There can be no assurance that the Company's plans for development
of its mineral properties will proceed as currently expected. There
can also be no assurance that the Company will be able to confirm
the presence of additional mineral deposits, that any
mineralisation will prove to be economic or that a mine will
successfully be developed on any of the Company's mineral
properties.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
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