Scotgold Resources Ltd Earn In Agreement to Portuguese Subsidiary (0664I)
March 19 2018 - 3:00AM
UK Regulatory
TIDMSGZ
RNS Number : 0664I
Scotgold Resources Ltd
18 March 2018
19 March 2018
Scotgold Resources Limited
("the Company" or "Scotgold")
Earn In Agreement to Portuguese Subsidiary
The directors of Scotgold are pleased to announce that the
Company has today concluded an Earn In Agreement (the "Agreement")
to its Portuguese subsidiary, Scotgold Resources Portugal Limitada
("Scotgold Portugal") which holds the Pomar Licence, with PanEx
Resources Limited ("PanEx").
The Agreement is subject to fulfilment of customary conditions
precedent within 60 days, including completion of satisfactory due
diligence by PanEx, and confirmation of title and authority.
On satisfaction of the conditions precedent, PanEx will commence
the Initial Project Development Phase which will entail expenditure
of up to EUR100,000 within 180 days of this Agreement. PanEx may
elect within this period to commence the First Development Phase,
under which it will expend at least EUR1,500,000 within 18 months
of election to do so. Upon providing satisfactory evidence of such
expenditure to the Company, Scotgold Portugal will issue shares
representing 50% of its total issued share capital to PanEx.
Panex may then elect to commence the Second Project Development
Phase, under which it will expend at least EUR5,000,000 within a
further 2 years of election to do so, designed to complete a
feasibilty study. Upon providing satisfactory evidence of such
expenditure to the Company, Scotgold Portugal will issue shares
representing a further 30% of its total issued share capital to
PanEx.
Upon issue of the full 80% of the total issued share capital of
Scotgold Portugal to PanEx, any further funding for the project
will be provided pro rata by PanEx and the Company.
The Company will make further announcements upon the completion
of due diligence and fulfilment of the conditions precedent.
Richard Gray, CEO of Scotgold, said:
"We are delighted to conclude this Agreement with PanEx, who,
using their strong technical and financial resources, will enable
the accelerated development of the highly prospective Pomar
licence. In particular it allows us to retain an interest in the
project as it advances and potentially continue to participate
beyond the feasibility study stage."
About PanEx
PanEx Resources Limited is an exploration company based in
Johannesburg, South Africa. The PanEx team has an unrivalled track
record of finding and developing gold mining projects by having the
ability to select the best exploration projects at an early stage.
Value is added from in-house expertise and access to financial
resources and other disciplines required to advance a project from
exploration through feasibility to production.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information -
Scotgold Resources Limited Tel: +44 (0)1838 400 306
Richard Gray
SP Angel Corporate Finance Tel +44 (0) 20 3470 0470
LLP
Nomad and Joint Broker
Ewan Leggat / Charlie
Bouverat
Smaller Company Capital Tel: +44 (0)20 3651 2911
Ltd
Joint Broker
Rupert Williams
Capital Markets Consultants Tel: +44(0)7703 167 065
Financial PR
Simon Rothschild
This information is provided by RNS
The company news service from the London Stock Exchange
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