TIDMSGZ
RNS Number : 7453W
Scotgold Resources Ltd
28 April 2016
SCOTGOLD RESOURCES LIMITED
MARCH 2016 QUARTERLY ACTIVITIES REPORT
CONONISH GOLD AND SILVER PROJECT
Bulk Processing Trial "BPT" Initiated
On 24 February 2016 Scotgold Resources Limited (ASX:SGZ, AIM:
SGZ) (Company) announced the initiation of the Bulk Processing
trial "BPT" at the Cononish Gold and Silver Project.
A stockpile of approximately 7000t of ore grading around 7.9g/t
Au and 39g/t Ag is stockpiled on the mine 'platform' at Cononish.
It is proposed to install a small scale pilot plant (portable and
skid mounted) to treat around 2,400t (approximately 1,200 m3) of
this material over approximately a six-month period. The material
to be treated forms part of the Probable Reserves for the project
(refer ASX and AIM announcements dated 26/05/2015).
The material will be treated through the plant which will
utilise gravity separation via a centrifugal device, similar to the
planned full scale plant and have a rated capacity of 1.5tph.
However, the flotation circuit process will be replaced by a spiral
bank to generate a sulphide rich concentrate. Thus no chemicals
will be used on site as part of the BPT and the gold generated can
be classified as "ethical". Fabrication of the plant itself in
South Africa has been completed, "dry" commissioning independently
verified and the plant has been shipped, with arrival on site
expected in early May as scheduled.
Planning application with Loch Lomond & The Trossachs
National Park Planning Authority "LLTNPPA" is well underway with a
formal application having been lodged and the statutory
notification and consultation process completed. Upon completion of
the LLTNPPA's internal review of the submissions received a
determination will be given.
The objectives of the BPT are to demonstrate the marketability
and profitability of Scottish gold production from Cononish, with
considerable interest from the Scottish jewellery industry already
having been received. It will also give further confidence to
metallurgical test-work already completed and to provide a basis
for a review of the development plan under the current Bankable
Feasibility Study.
CORPORATE
Placement
The Company announced on 10 March 2016 that it had placed
83,333,332 new ordinary Scotgold shares ("Shares") at an issue
price of GBP0.006 (approximately AUD$0.011) each with new
shareholders to raise GBP500,000 (approximately AUD$948,500) before
expenses.
The funds raised will be used to:
- Investigate the viability of a phased approach to the
development of the Cononish Gold and Silver Project and as
appropriate revise the Cononish Bankable Feasibility Study
("BFS").
- Provide additional working capital during the previously
announced Bulk Processing Trial ("BPT") such that the premium
achieved on verified Scottish gold can be optimized.
Convertible Note
The Company announced on 23 March 2016 that it had issued
73,900,000 fully paid shares to a sophisticated and private Section
708 exempt investor Mr Nat Le Roux, Non-Executive Chairman of the
Company. The shares were issued through the early conversion of
rights in a Convertible Note (maturity date 30 September 2016) held
by Mr Le Roux previously approved by shareholders on 30 July
2014.
As a result of this conversion, the debt principal owed by the
Company to Mr le Roux under the 2014 Convertible Note reduced from
AUD$ 780,000 to AUD$ 336,600.
Exercise of Options
In addition to the 73,900,000 fully paid shares as described
above, the Company issued 56,846,154 unquoted options over ordinary
shares in the Company, exercisable at A$0.012 at any time prior to
31 March 2016 to Mr Le Roux. These options were issued as a
condition of the issue of shares following the partial exercise of
a convertible note. The convertible note and resulting issue of
shares and attaching options were approved by shareholders at a
general meeting on 30 July 2014.
On or about 30 March 2016, Mr Le Roux sold 20,593,750 of the
56,846,154 unexercised options for consideration of 0.01 pence per
option, including 1,000,000 to Mr Richard Gray, Managing Director
and CEO of the Company. The remainder of the options issued to Mr
Le Roux have now expired, unexercised.
The 20,593,750 options were exercised prior to expiry and
following admission of the 20,593,750 new shares, the Company's
enlarged issued share capital comprises 1,437,327,443 shares, with
voting rights. The Company does not hold any Shares in treasury,
therefore the total number of shares in the Company with voting
rights is 1,437,327,443.
Director Resignation
The Company advised the resignation of Mr Richard Harris,
Non-Executive Director of the company, with effect from 3 April
2016. The Board thanked Mr Harris for his contribution to the
Company and wished him well in his future endeavors.
Under an agreement between Mr Harris and the Company dated 27
May 2014, Mr Harris has a contractual right to appoint a nominee
director to the Company. Mr Harris has notified to the Company his
intention to appoint a nominee director, but has not done so at the
present time. A further announcement will be made as
appropriate.
Appointment of Chief Financial Officer and Company Secretary
On 13 January 2016 the Company announced the appointment of
David Swan as Chief Financial Officer ("CFO"). David has acted as
CFO and finance director of a number of public and public listed
companies in the exploration and mining sector in Australia and UK.
David is based in London, UK.
The Company also announced the appointment of Gabriel Chiappini
as Company Secretary. Mr Chiappini is an Australian chartered
accountant with extensive corporate experience within Australia and
the UK. Mr Chiappini has worked in the exploration and mining
sector for many years. Mr Chiappini was appointment was effective
31 December, 2015.
Change of Registered Address
The Company advised that its registered office has changed
to:
50 Ord Street
West Perth,
Western Australia, 6005
SUMMARY
This has been an exceptionally busy quarter for the Company.
Technically, moving forward with the BPT is providing tangible
progress towards the full development of the Cononish Gold and
Silver Project. The Company expects to report further progress in
this regard in the coming weeks.
Corporate activity this quarter has also significantly
strengthened the Company. The successful placement and exercise of
options has raised approximately GBP630,000 before expenses. These
funds will not only be used for a potential revision to the
Cononish BFS incorporating a phased development approach, but will
also provide greater working capital for the Company during the
BPT, such that a gold sales strategy to maximise the premium on
Scottish gold sales can be achieved.
In addition to providing additional funds, the corporate
activities have also strengthened the Company's balance sheet by
reducing debt and demonstrate the continuing confidence and support
of the Chairman and Chief Executive Officer. The Company is
reviewing further corporate initiatives to both simplify its
structure and save costs.
Gabriel Chiappini
Company Secretary
Forward Looking Statements
This announcement contains certain statements that may
constitute "forward looking statements". Such statements are only
predictions and are subject to inherent risks and uncertainties,
which could cause actual values, results, performance achievements
to differ materially from those expressed, implied or projected in
any forward looking statements.
Competent Persons Statement
The information in this report that relates to the 2015 Ore
Reserves for Cononish Gold Project (refer ASX announcement dated
25/05/2015) is based on information compiled by Pat Willis, a
Competent Person who is registered as a Professional Engineer
(Pr.Eng.) with the Engineering Council for South Africa (ECSA) and
a Fellow in good standing and Past President of the Southern Africa
Institute of Mining and Metallurgy (FSAIMM).. Mr Willis is employed
by Bara Consulting Limited, an independent consulting company. Mr
Willis has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'. Mr Willis consents to the inclusion in the report of the
matters based on his information in the form and context in which
it appears.
The information in this report that relates to the 2015 Mineral
Resources Estimate for Cononish Gold Project (refer ASX
announcement dated 22/01/2015) is based on information compiled by
Malcolm Titley, a Competent Person who is a Member of The
Australasian Institute of Mining and Metallurgy. Mr Titley is
employed by CSA Global (UK) Limited, an independent consulting
company. Mr Titley has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Titley consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
Further, the Company confirms it is not aware of any new
information or data that materially affects the information
contained in the original announcements and that all material
assumptions and technical parameters underpinning the estimate of
Resources and Reserves continue to apply and have not materially
changed.
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2016 02:00 ET (06:00 GMT)
For further information please contact:
Scotgold Resources Stockdale Securities Capital Markets Vicarage Capital
Limited Limited Consultants Limited
------------------- --------------------- ----------------- -----------------
Richard Gray Alastair Stratton Simon Rothschild Rupert Williams
- CEO / Robert Finlay
------------------- --------------------- ----------------- -----------------
Tel: +44 (0)7905 Tel: +44 (0)20 Tel +44 (0)7703 Tel: +44 (0)20
884 021 7601 6100 167 065 3651 2911
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Tenement details
The Company holds a Lease (100%) from the Crown Estate
Commissioners over Cononish Farm, county of Perth, Scotland UK.
The Company holds a Lease (100%) from the landowner over
Cononish Farm, county of Perth, Scotland UK.
The Company holds five Mines Royal Option Agreements (100%) with
the Crown Estate Commissioners as detailed below:
-- Glen Orchy: Location - counties of Perth and Argyll, Scotland UK
-- Glen Lyon: Location - counties of Perth and Argyll, Scotland UK
-- Inverliever: Location - counties of Dunbarton, Argyll and Perth, Scotland UK
-- Knapdale: Location - county of Argyll, Scotland UK
-- Ochils: Location - county of Clackmannan, Perth, Kinross and Stirling, Scotland UK
No tenements were acquired or disposed of during the quarter,
although as previously noted, the Inverliever option area will
reduce in size on finalization of matters with the Crown
Estates.
No other beneficial interests are held in any farm-in or
farm-out agreements.
No other beneficial interests in farm-in or farm out agreements
were acquired or disposed of during the quarter
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBIGDSLSDBGLI
(END) Dow Jones Newswires
April 29, 2016 02:00 ET (06:00 GMT)
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