Scotgold Resources Ltd could appoint administrators in Australia, in addition to the expected administration in the UK, after its largest shareholder took further steps over its loan agreement.
RIGHTS
The secured creditor over SGZ Cononish Ltd, developer of the gold-silver mine near Tyndrum, is Bridge Barn Ltd controlled by former chairman and director Nathaniel le Roux.
Mr le Roux also owns 33.50% shares in the company following the May fundraise and is one of seven people holding a combined 63.39%.
Bridge Barn, owed £450,000 loan interest due by 1 December 2023 and £2.5 million capital repayments, has now notified Scotgold that it has enforced its rights under the loan agreement of May 2018.
These include rights over Scotgold’s shares in SGZ Grampian Ltd, focused on geological exploration of the Dalradian Group in the southwest Highlands.
“SGZ Cononish Ltd and SGZ Grampian Ltd represent the only substantive assets of the company and as such the board are also exploring the appointment of administrators in Australia over Scotgold Resources Ltd,” added Scotgold.
Following failed financing talks, the Australian company continues to work with advisors and expects to begin an administration process “in the coming days” for SGZ Cononish Ltd and SCZ Grampian Ltd.
The company will make further announcements in due course.