Scotgold Resources warns of ‘potential administration’

Scotgold Resources Limited, which owns the Cononish Gold and Silver Mine near Tyndrum, has warned of a “potential administration appointment” after a prospective investor withdrew from talks with the firm.

The company has said a significant capital investment is required for the firm.

Scotgold said last week it had placed the majority of its employees on short-term unpaid leave until further notice.

Scotgold has said in the past it has 93 employees.

On September 11, the company said trading in its shares would be suspended immediately “pending clarification of its financial position.”

In a stock exchange statement on Monday, Scotgold said: “On 29 September, the company announced that financing discussions were ongoing and should sufficient financing not be secured it would need to appoint an Administrator.

“The company has been informed by the most advanced prospective investor that they have decided not to proceed with the investment and have now withdrawn from the discussions it was having with Scotgold.

“Therefore, the directors are assessing the remaining strategic options open and are in discussion with existing funders which could result in the appointment of Administrators over the coming days.

“Further announcements will be made in due course.”