Scotgold receives approval for Cononish mine from national park authorites

Grampian Highlands-focussed gold miner Scotgold Resources has received unanimous approval from the Loch Lomond and Trossachs National Park Authorities of its development application for the Cononish Goldmine.

The two authorities approved Scotgold's application at a special board meeting held on Tuesday, subject to the conclusion of legal agreements.

Richard Gray, chief executive of Scotgold, said, "This will be the first commercial gold mine in Scotland's history. The process has been aided by [the] professionalism of the Park's executives."

"I am convinced that our project will meet both the highest environmental standards and provide a significant boost to the local economy around Tyndrum," he added.

Commenting on the announcement, analysts at SP Angel said: "The news of the planning application approval highlights strong support of local authorities for the project. The new phased development approach allows for a lower start up capex while still providing attractive returns thanks to high grade nature of the Cononish deposit."

As of 1040 GMT, shares had leapt 25.26% forward to 35.70p.