TIDMSGZ

RNS Number : 4579B

Scotgold Resources Ltd

06 October 2015

SCOTGOLD RESOURCES LIMITED

CLOSE OF NON-RENOUNCEABLE RIGHTS ISSUE

Scotgold Resources Limited (ASX: SGZ) (Company) advises that its recently announced pro-rata non-renounceable rights issue (Rights Issue) closed on 30 September 2015. The Rights Issue offered eligible shareholders the opportunity to subscribe for one (1) new share for every ten (10) existing shares held at the record date of 4 September 2015 at an issue price of 1.3 cents each, together with one (1) free attaching unlisted option per new share subscribed (Options). The Options are exercisable at GBP0.01 on or before 30 September 2017.

A total of 95,295,889 new shares were applied for under the Rights Issue to raise approximately $1,238,846 (before costs) and a total of 95,295,889 Options will be issued under the Rights Issue. The Rights Issue is not underwritten. Accordingly, the shortfall under the Rights Issue is 18,243,341 shares and 18,243,341 Options, as follows:

 
 Event                                   Number      $             % of total 
                                                                     offered 
                                                                      under 
                                                                      Rights 
                                                                      Issue 
----------------------------------  -----------  ----------  ----------------------- 
 Shares applied for under 
  Rights Issue                       91,090,481  $1,184,176                      80% 
----------------------------------  -----------  ----------  ----------------------- 
 Shares applied for under 
  Excess Entitlements Facility 
  (by eligible shareholders 
  in excess of their entitlement)     4,205,408     $54,670                       4% 
----------------------------------  -----------  ----------  ----------------------- 
 Total shares to be issued           95,295,889  $1,238,846                      84% 
----------------------------------  -----------  ----------  ----------------------- 
 Total free attaching Options 
  to be issued                       95,295,889 
----------------------------------  -----------  ----------  ----------------------- 
 Remaining Shortfall shares 
  to be placed                       18,243,341    $237,163                      16% 
----------------------------------  -----------  ----------  ----------------------- 
 Remaining Shortfall free 
  attaching Options                  18,243,341 
----------------------------------  -----------  ----------  -----------------------

It is anticipated that the shares and Options under the Rights issue will be issued on 7 October 2015 and dispatch of holding statements is expected to occur on 8 October 2015.

Application is being made for the shares to be admitted to trading on AIM and trading is expected to commence on 12 October 2015.

Following the Rights Issue, the Company's capital structure is as follows:

 
 Security                          Number 
-------------------------  -------------- 
 Total shares on issue*     1,230,688,361 
-------------------------  -------------- 
 Total options on issue*      135,560,161 
-------------------------  --------------

*Not including Rights Issue Shortfall.

Following the Rights Issue the Directors reserve the right to lace the Shortfall shares as 1.3 cents each (with free attaching Options) at their discretion within 3 months.

Richard Gray, Chief Executive Officer commented: "We are extremely pleased with the take up of the Rights Issue and the support it demonstrates from our shareholder base. Given the high level of interest shown, I fully expect that the Directors will exercise their discretion and place the outstanding shortfall within the prescribed period. The Company is continuing to advance the financing options for the Cononish Project and we will and we will keep our shareholders informed as and when the next milestones are reached".

For further information

   Scotgold Resources Limited                   Westhouse Securities Limited 
   Richard Gray                                         Robert Finlay  / Alastair Stratton

Chief Executive Officer

   Tel: +44 (0)7905 884 021                        Tel: +44 (0)20 7601 6100 
   Capital Markets Consultants                   Vicarage Capital Limited 
   Simon Rothschild                                   Rupert Williams 
   Tel +44 (0)7703 167 065                         Tel: +44 (0)20 3651 2911

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 07, 2015 02:00 ET (06:00 GMT)

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