TIDMSGZ

RNS Number : 0047A

Scotgold Resources Ltd

21 December 2017

Scotgold Resources Limited

21 December 2017

Scotgold Resources Limited

("Scotgold" or the "Company)

Results of Rights Issue

Scotgold Resources Limited (AIM:SGZ) advises that the period for acceptance for the non-renounceable rights issue, first announced on 13 November 2017 and as extended by the announcement of 6 December (the "Rights Issue"), closed on 15 December 2017.

In accordance with the terms of the Rights Issue, a total of 5,792,007 allotment rights were taken up, with a further 325,453 shortfall shares being successfully applied for at the Offer Price of GBP0.25 per New Share.

In accordance with the terms of the Underwriting Agreement as set out in the Offer Information Statement in respect of the Rights Issue, Nat le Roux, Chairman of the Company, will take up a total of 4,508,480 shares pursuant to the Underwriting Agreement.

Consequently, the Company has raised gross proceeds of approximately GBP2.66 million from the Rights Issue, before expenses of the issue.

Together with his allotment rights and the shares pursuant to the Underwriting Agreement, Mr le Roux's holding will increase to 15,045,494 shares being 56.64% of issued capital.

Application is being made for the total number of 10,625,940 fully paid new ordinary shares ("New Shares) to be admitted to trading on AIM ("Admission") and Admission is expected to take place on or around 29 December 2017.

Following Admission, the Company's enlarged issued share capital will comprise 26,565,349 ordinary 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 will be 26,565,349. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

In addition to the New Shares to be issued, a total of 2,125,149 options to acquire one share each at an exercise price of GBP0.40, expiring on 31 December 2019 (the "Options") have also been granted pursuant to the terms of the Right Issue. Pursuant to the Rights Issue and the Underwriting Agreement, Mr le Roux will hold 1,744,657 options. Application will not be made to have the Options admitted to trading on AIM.

Shares will be issued in accordance with the indicative timetable set out below:

Timetable

 
 Result of Rights Issue and total        21 December 
  shares in issue Announcement            2017 
 Issue date of Securities                27 December 
                                          2017 
 AIM Admission date and CREST accounts   29 December 
  credited for Depositary Interests       2017 
  (indicative)

Capitalised terms used but not defined in this announcement are as defined in the Offer Information Statement that was mailed to Eligible Shareholders and is available on the Company's website www.scotgoldresources.com.

For further information please contact:

Scotgold CEO, Richard Gray said:

"The Company is pleased that so many of our smaller shareholders took the opportunity to participate in this Rights Issue, alongside our major shareholder and underwriter, Nat le Roux. The funds raised will enable the Company to continue with preparatory works while we wait for the Planning Determination, now expected as early as possible in 2018, and the development works will start immediately upon a positive outcome."

   Scotgold Resources Limited                                        Stockdale Securities Limited

Richard Gray Robert Finlay / Ed Thomas

   Tel: +44 (0)1838 400 306                                                Tel: +44 (0)20 7601 6100 
   Capital Markets Consultants                                        Smaller Company Capital Ltd 
   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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