Scotgold signs sales agreement with two unnamed Scottish jewellers

Scotgold Resources announced on Wednesday that a sales agreement had been signed with two of Scotland's “pre eminent” manufacturing jewellers.

The AIM-traded company said the agreement covered the first refining batch - approximately 16 ounces - of Scottish Gold made available for jewellery from Scotgold's bulk processing trial at the Cononish Gold and Silver Mine.

It said the agreement involved “significant” input from both Baird & Co as the appointed refiner and the Edinburgh Assay Office who will verify the Scottish gold's provenance through a closely monitored chain of custody.

Overall management of the negotiations was undertaken by The Dragonfly Initiative as Scotgold's appointed consultant to manage the marketing and commercialisation of the company's Scottish gold, the board said.

While all the parties had agreed to keep the precise terms of the sale confidential, the premium received was in excess of the 30% reserve stipulated for the Scottish Gold Rounds, auctioned in November 2016.

In addition to setting out the commercial terms for this first sale to the Scottish jewellery industry, the sales agreement included detailed conditions for the use and marketing of the Scottish gold, which the company said were designed to protect the branding of the “rare and precious” commodity and would form the basis of all such future sales.

Upon delivery of the Scottish gold and the production of the first unique pieces, the two authorised jewellers would make further announcements as to where and how the pieces could be obtained.

In addition to the production of Scottish Gold, the BPT reportedly continued to produce gold in the form of Pyrite concentrate, of which approximately 53 WMT had been shipped and sold under the previously-announced agreement with Ocean Partners.

“This is yet another pleasing milestone and validates our belief in the strength and value of combining Scottish gold of proven provenance with the skill and prestige of the Scottish jewellery industry,” said CEO Richard Gray.