Scotgold Resources Ltd could appoint administrators in the next few days after advanced talks failed with a strategic investor for Cononish gold-silver mine.
In a statement today the company said: “Unfortunately, these discussions have not resulted in an investment at this time.
“Therefore, the directors, having assessed the options open to them, are now considering the appointment of administrators over the coming days.”
Scotgold, which faces action by a creditor over debt interest, added it would make further announcements in due course.
The Australian company has retained some staff for maintenance work at Cononish and placed others on short term unpaid leave. During the second week of September Scotgold suspended trading.
The mine has presented its own problems with poor gold grades, prompting a 12-month third-party review which highlighted the need for top-down long hole open stope mining.
Since 7 June, chief financial officer Sean Duffy has been the interim chief executive officer after the previous post holder Phil Day resigned to spend more time with his family.
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