Scotgold Resources Ltd has conditionally raised £2.5 million through a placing and subscriptions by certain directors.
DIRECTORS DEALINGS
The accelerated bookbuild announced on 9 February 2023 involved 6,250,000 new ordinary shares at a price of 40p per share.
Scotgold will issue in aggregate 6,250,000 new shares, representing approximately 9.48% of the enlarged share capital.
Seven directors of the Australian company are participating in the subscription for an aggregate 1,435,000 subscription shares with a total value of £574,000.
These include non-executive chairman Peter Hetherington 250,000 shares; chief executive officer Phil Day, 87,500; non-executive director (NED) Nathaniel le Roux, 587,500; NED Ian Proctor 62,500; NED William Styslinger III 281,250; NED Richard Barker, 25,000; and NED Evan Spencer 78,750.
RETAIL OFFER
The company also began a separate retail offer of up to 1,250,000 new ordinary shares at the placing price to raise up to a further £500,000 to provide existing retail shareholders in the United Kingdom with an opportunity to participate.
The offer lasts until 15 February.
RELATED PARTY TRANSACTIONS
Bridge Barn Ltd, owned and controlled by Mr Nathaniel le Roux and provider of debt funding to Scotgold, has agreed the option to defer £2.5 million capital repayments due by Scotgold in 2023 by up to nine months from the due date.
Potential deferral of repayments would be used to further exploration work at the Cononish gold and silver mine, as well as exploration work on the wider Grampians area.