Scotgold raises £3.0m to accelerate plans to double production at Cononish

Scotgold said it had opted to make the share placing as part of an effort to accelerate plans to double production at its Cononish Gold and Silver Mine, which was on course to become Scotland's first commercial gold mine by 30 November.

The AIM-listed group said the funds will also be used to increase exploration activities, rolling out its systematic programmes across its 2,900 square kilometre licence portfolio in the Grampian Terrane of Scotland.

Chief executive Richard Gray said: "We have an exceptionally exciting few weeks ahead of us as we make final preparations for our first gold pour at Cononish by 30 November. As we ramp up production thereafter, the funds raised today will allow us to commit to the expenditures required to build on this anticipated momentum and accelerate the Phase 2 expansion project, whilst at the same time maintaining prudent cash reserves.

"With this strong cash balance in place, we have a clear path to realising the significant value that we believe Cononish and our additional prospects offer to investors."

As of 1050 BST, Scotgold shares had tumbled 22.85% to 116.50p.