Scotgold Resources secures cash advance

Scotgold Resources Limited, which owns the Cononish Gold and Silver Mine near Tyndrum, said it has secured a $500,000 advance to assist with short-term working capital from its gold offtake partner.

Scotgold shares rose about 20%, but are down more than 70% year to date.

“The primary repayment mechanism will be executed by offsetting US$100,000 against monthly deliveries from July to November 2023 inclusive,” said Scotgold.

“The interest rate being charged is SOFR + 4.5% per annum.

“Additionally, Bridge Barn Limited, a company owned and controlled by Mr Nathaniel le Roux, non-executive director, and provider of debt funding to the company, has agreed to postpone all interest payments that are currently due and payable by the company to Bridge Barn up to and including 1 December 2023.

“The total of the interest payments being deferred is £450,000.

“The deferral of interest payments constitutes a related party transaction pursuant to AIM Rule 13 …

“The independent directors consider, having consulted with Shore Capital, the company’s nominated adviser, that the terms of the related party transaction are fair and reasonable insofar as Shareholders are concerned.”