Scotgold Resources Ltd aims to raise £1.5 to £2 million via an open offer and a subscription for its operations at Cononish gold and silver mine near Tyndrum in Scotland.
OPEN OFFER
Existing shareholders can subscribe for up to 10,065,262 new ordinary shares of 15 pence to raise up to a maximum of £1.5m.
Directors participating include non-executive chairman Peter Hetherington to subscribe for a minimum of 730,046 offer shares, equivalent to £109,507; non-executive director (NED) Ian Proctor: 198,598 shares for £29,790; NED Nathaniel Le Roux: 1,666,667 shares for £250,000; and NED William Styslinger: 666,667 shares for £100,000.
Significant shareholder in the company Charles Outhwaite has also undertaken to subscribe for 320,238 shares for £48,036.
SUBSCRIPTION
Scotgold has entered into a subscription agreement with existing shareholders Maurice and Nicole Mason for a total 3,333,333 ordinary shares, each at 15 pence, to raise £500,000.
The issue price for the entire fundraise is at a discount of approximately 6.25% on 20 April 2023.
The total number of new ordinary shares issued represent 20% of Scotgold’s existing ordinary shares.
Chief executive Phil Day said that the company’s financial state still cast doubt over its future, with its current cash position being £8,000.
USES
Funds raised will be used to purchase a more advanced resolution definition drill rig, to improve development of the underground mine and the company’s grade control modelling.