Scotgold Resources Ltd Exploration Programme Clarification (4458U)
November 25 2019 - 2:00AM
UK Regulatory
TIDMSGZ
RNS Number : 4458U
Scotgold Resources Ltd
25 November 2019
Scotgold Resources Limited (AIM:SGZ)
("Scotgold" or the "Company")
Exploration Programme Clarification
Scotgold Resources Limited (AIM:SGZ) notes recent speculation by
a media source concerning the cost of its exploration programme and
the Company's funding situation.
The audited report and accounts published for the year ended 30
June 2019 contained a note (Note 17) that set out the "proposed"
figures for minimum expenditure on exploration and licence fees
provided to the Crown Estate Scotland in December 2018 as part of
an application to exchange five existing mining licences for
thirteen new licences. The figures provided to the Crown Estate
Scotland in December 2018, and stated in the Annual Report 2019,
were as follows:
Minimum expenditure Licence Fee Total
(est.) (est.) (est.)
A$ A$ A$
Not later than one year 5,824,554 117,435 5,941,989
Later than 1 year but not
later than 2 years 2,590,561 117,435 2,707,996
Later than 2 years but not
later than 5 years 7,427,403 352,305 7,779,708
-------------------- ------------ -----------
15,842,518 587,175 16,429,693
==================== ============ ===========
The Company wishes to make clear that only the Licence Fee is a
contracted amount and is conditional on the Company continuing to
hold all 13 licences over the remaining five year period ending in
November 2024. The exploration figures were proposed estimated
figures provided at the time of the application (as the Note 17 in
the 2019 Annual Report made clear), which the Company is not
contractually obliged to spend. The figures are also subject to
material change over time. The figures may change owing to the
results of exploration and the available cash resources to fund
exploration. For example, the Company's budget for the year ending
30 June 2020 currently anticipates that exploration spending will
be approximately A$0.5 million. For the year ended 30 June 2019 the
Company's exploration spend was approximately A$0.6m.
Scotgold's licences are subject to a bi-annual review by the
Crown Estate Scotland commencing in November 2020. The contractual
test to retain the exploration licences requires the Company to
provide the Crown Estate Scotland with satisfactory evidence of the
Company's progress towards obtaining planning permission for the
licence areas. At such reviews the Crown Estate Scotland will
assess a progress report provided by the Company. Such reports will
include a review of past exploration work and proposed new work
programmes. Whilst the amount of exploration expenditure is a
relevant consideration as to the granting and retention of
licences, it is one of many considerations and not
determinative.
The Directors of the Company remain confident that all of the
Company's financial commitments, including those relating to
exploration activities, can be funded for the foreseeable future
from existing cash resources, loan facilities and anticipated
future cash flows from the Cononish gold mine, which is expected to
commence production at the end of February 2020.
For further information please contact:
Scotgold Resources Limited
Richard Gray Tel: +44 (0)1838 400 306
SP Angel Corporate Finance LLP
Nomad and Joint Broker
Ewan Leggat / Charlie Bouverat Tel +44 (0) 20 3470 0470
Capital Markets Consultants
Financial PR
Simon Rothschild Tel: +44(0)7703 167 065
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFEMFALFUSELF
(END) Dow Jones Newswires
November 25, 2019 02:00 ET (07:00 GMT)
Scotgold Resources (LSE:SGZ)
Historical Stock Chart
From Jul 2024 to Aug 2024
Scotgold Resources (LSE:SGZ)
Historical Stock Chart
From Aug 2023 to Aug 2024