Scotgold Resources plc has provided a short-term director loan of £2 million for its subsidiary, SGZ Cononish Ltd (SCL), operating the gold mine near Tyndrum, Scotland.
The loan was offered following delays in increasing production at the Cononish gold and silver mine.
Nathaniel le Roux, William ‘Bill’ Styslinger, Peter Hetherington and Ian Proctor, together with an unrelated third party holding 3.35% of the issued share capital of the company have provided the loan to be drawn down in two tranches of £1m each.
The term of the loan will be six months from the date of the agreement and early repayment is at the option of SCL with no penalty.
No interest is payable on the director loan and there is no security on the loan.
Bridge Barn Ltd, owned and controlled by Mr le Roux, and which has provided a loan facility of £7.5m to SCL secured by a debenture over all of the assets and undertakings of SCL (including the transfer of security of the issued capital of SCL) has agreed not to enforce its rights under the debenture as long as there are any outstanding monies due to the lenders in terms of the director loan.