Scotgold Resources Ltd Amendment to Loan Agreement (2132I)
March 20 2018 - 3:01AM
UK Regulatory
TIDMSGZ
RNS Number : 2132I
Scotgold Resources Ltd
20 March 2018
20 March 2018
Scotgold Resources Limited
("the Company" or "Scotgold")
Amendment to Short Term Loan Agreement
The Company is pleased to announce that the following key terms
in the Short Term Loan Agreement between the Company and its
chairman, Mr Nat le Roux ("the Agreement") as announced on 15 March
2017 have been amended as follows:
-- Repayment Date extended to 30 September 2018
-- Interest Rate revised to Nil % per annum.
The Short Term Loan of GBP1,000,000 was drawn down by the
Company on 30 March 2017 and attracted an interest rate of 10% per
annum, which at the Company's option was accrued but is now no
longer payable. The loan can be repaid before the Repayment Date by
the Company without penalty.
The amendment to the Agreement constitutes a related party
transaction under Rule 13 of the AIM Rules ("the Transaction").
Accordingly, the board of Scotgold, excluding Nat Le Roux who is
precluded from opining, consisting of Richard Gray, Christopher
Sangster, Philip Jackson and Richard Barker, having consulted with
SP Angel, the Company's nominated adviser, consider that the terms
of the Transaction are fair and reasonable insofar as its
shareholders are concerned. It is noted that all other terms of the
Agreement remain unchanged.
Richard Gray, CEO of Scotgold, said:
"This extension to the repayment date now gives us the necessary
time to progress the funding required to complete the first stage
of development of the Cononish Gold Mine. Nat le Roux's continued
support and confidence in our Project is amply demonstrated by his
willingness to forgo all interest due on the loan, which can now be
applied for the benefit of all shareholders."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information -
Scotgold Resources Limited Tel: +44 (0)1838 400 306
Richard Gray
SP Angel Corporate Finance Tel +44 (0) 20 3470 0470
LLP
Nomad and Joint Broker
Ewan Leggat / Charlie
Bouverat
Smaller Company Capital Tel: +44 (0)20 3651 2911
Ltd
Joint Broker
Rupert Williams
Capital Markets Consultants Tel: +44(0)7703 167 065
Financial PR
Simon Rothschild
This information is provided by RNS
The company news service from the London Stock Exchange
END
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