Scotgold Resources Ltd said it had received the second tranche of the new loans of £2.015 million for Cononish gold and silver mine near Tyndrum in Scotland.
LOAN
The sum is from a loan procurement agreement with Fern Wealth GmbH from a syndicate of high-net-worth investors for up to £3m.
Scotgold added it anticipated to draw fully the remaining £0.985m on or before 30 June 2022.
The company intends to use the proceeds to fast-track the optimisation initiatives to achieve a gold production run rate of c.23,500oz p.a. by the end of Q1 2023.
USES
Initiatives planned for 2022 include:
· Design, construct, and commission a tailings thickener to improve the throughput and recoveries of concentrate product in the processing plant.
This aims to achieve a monthly run rate of c. 4,000 feed tonnes to the process plant, equating to c. 16,000 – 17,500 ounces p.a. run rate of gold.
· Enhance mining efficiencies of the underground mine to ensure continuous operations.
· Design, construct, and commission an ore sorter at the processing plant between the existing crushing unit and the mill to realise an increase in ounces of gold processed per tonne at lower tonnages and potentially lower capex and opex.
The company added it would complete due diligence by the end of Q2 2022 and the sorter, if approved, would be operational by the end of Q1 2023.