Scotgold Resources Ltd said that some of its directors will provide a short-term loan of up to £2 million as the group reported mounting losses at Cononish, near Tyndrum in Scotland.
Scotgold also announced that the mine’s processing plant had operated throughout April 2021, and that the first shipment of concentrate product was expected during the second week of May 2021.
FINANCES
In its financial results for the half year ended 31 December 2020, the Australian miner recorded losses of AU$2,357,677 / £1.3m (H2 2019: AU$1,259,410 / £700,000).
The group held cash and equivalents of AU$1,256,167 / £700,000 at the end of H2 2020 (H2 2019: AU$4,567,789 / £2.5m).
In October 2020, AU$5,136,633 / £2.9m was raised from the issuing of 2,727,273 ordinary shares.
The company previously said that delays to the increase in production had resulted in a negative impact on Scotgold’s cash position and working capital.
Directors Nathaniel le Roux, William ‘Bill’ Styslinger, Peter Hetherington and Ian Proctor, together with an unrelated third party, today undertook to provide a £2 million loan which is expected to be formally executed by the end May 2021.
Scotgold is currently reviewing the Cononish mine plan to provide greater certainty about any potential working capital required beyond the director loan.