Scotgold Resources Limited – Fern Wealth Debt Funding, £1.2m, Tranche 1 of £3m loan Full repayment of £250,000 bridge loan via gold concentrate sales from ‘April Millions of Pounds]

Scotgold Resources Limited (GOAL: SGZ), Scotland and the from the United Kingdom first commercial gold producer, announced on April 7, 2022 that he had entered into a loan agreement with Fern Wealth GmbH (“Fern Wealth”) from a syndicate of high net worth investors for an amount of up to £3 million (the “New Loans”) (the “Agreement”).

The Company is pleased to announce that, under the terms of the agreement, it has received and completed the first tranche of the drawing of new loans for the total of £1.2 million on May 20, 2022. It is expected that the rest £1.8m of £3 million New loans will be received and fully drawn no later than June 30, 2022. Subject to receipt of the full amount of £3 million under the new loans, the company intends to use the proceeds received to accelerate the company’s optimization initiatives to achieve a gold production rate of approximately 23,500 ounces per year from by the end of the first quarter of 2023.

Key optimization initiatives planned for 2022 include: Designing, constructing and commissioning a tailings thickener, a cost-effective technology to improve the throughput and recovery of concentrate products in the processing plant to achieve operating monthly of approx. 4,000 tonnes of mill feed by the end of Q2 2022, which equates to approximately 16,000 – 17,500 ounces per gold rate by the end of Q2 2022.

Improve the mining efficiency of the underground mine to ensure continuous operations and Design, construct and commission an ore sorter at the processing plant between the existing crushing unit and the plant to achieve an increase in the number of ounces of gold processed per tonne at lower and potentially lower CAPEX and OPEX tonnages.

Due diligence is to be completed by the end of Q2 2022 and the sorter, if approved, to be operational by the end of Q1 2023. to improve its working capital position and to be able to finalize the purchase of the tailings thickener to begin the construction and commissioning phase of the optimization initiative.

Repayment of the short-term loan facility – Barn Bridge

Scotgold announced the March 3, 2022 that it had obtained a short-term loan facility with Grange Bridge Limited (“Bridge Barn”) a company owned and controlled by Nathaniel LeRoux (non-executive director) providing £250,000 to Scotgold (the “Short Term Loan Facility”), to cover working capital requirements which had been affected by the delay in the shipment of the Company’s gold concentrate from the port, due to events macro and geopolitics in March 2022 impacting global shipping companies. The Company is pleased to report that it has fully repaid the short-term loan facility plus interest, using the proceeds from its April 2022 sales of gold concentrate which totaled slightly more £1 million for the month. The information contained in this press release is considered by the Company to constitute inside information within the meaning of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as amended) as it forms part of the domestic law of the UK under the European Union (Withdrawal) Act 2018 (as amended). Upon publication of this announcement via the Regulatory Information Servicethis privileged information is now considered to be in the public domain.


Tel: +44 (0) 774 8843 871

Scotgold Resources Ltd (AIM: SGZ), is Scotland first commercial gold producer. The Company poured the first gold in November 2020 to her Cononish Gold and silver mine (‘Cononish) to Tyndrum, Scotland and develop it into a +23,500 oz per annum gold mine by the end of Q1 2023. Cononish is a high-grade underground mining operation with a central processing plant producing gold concentrate for abstraction and gold for the Scottish jewelery industry. Once in full production, the mine has projected operating costs of c.£544/oz AISC, which will place Cononish in the lowest quartile of gold mining operations globally.

(C) 2022 electronic news edition, source ENP Newswire

Comments are closed.