Scotgold Resources Limited, which owns the Cononish Gold and Silver Mine near Tyndrum, said on Monday the firm’s ability “to continue as a going concern is entirely dependent on the quantity and grade of ore that is produced from now on.”

The company said its recent shares subscription and open offer have raised £2 million.

Scotgold shares rose about 7% to 18p but the stock is down about 70% for the past 12 months, giving the firm a current stock market value of about £14 million.

Scotgold said: “Q1 2023 was very challenging for Scotgold.

“Q2 2023 has started better but the ability for Scotgold to continue as a going concern is entirely dependent on the quantity and grade of ore that is produced from now on.

“The company has good visibility on what is expected for the next three months and work is underway on the mining schedule and plans for the balance of 2023 and beyond.”

The company added: “From 5 April to 30 April, 229 ounces of gold in flotation concentrate has been produced with 43 tonnes of gold concentrate shipped to the company’s off-take partner with a sales value of £0.3m.

“Further Scottish gold doré sales were made to Scottish jewellery companies, totalling £183,478, from 1 January 2023 to 4 May 2023.

“As previously disclosed Q1 2023 production was disappointing, with 4,519 tonnes of ore mined at 5.35 g/t which resulted in 758 ounces of gold being produced in the quarter.”