Scotgold Resources Limited, which owns the Cononish Gold and Silver Mine near Tyndrum, said on Monday it “is now in advanced discussions with a new strategic investor.”

On October 2, Scotgold 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 company.

Scotgold had already placed the majority of its employees on short-term unpaid leave until further notice.

On Monday, Scotgold said: “On 2 October 2023 the company announced that the most advanced prospective investor had decided not to proceed with investment in the company and had withdrawn from the discussions it was having with Scotgold.

“Further to this, the company is now in advanced discussions with a new strategic investor which, should final agreement be reached, is expected to provide sufficient funding for the company to continue as a going concern.

“Whilst financing discussions are at an advanced stage, in the event the company cannot secure financing with the new strategic investor, this could result in the appointment of administrators.”