Scotgold Resources, Scotland’s first commercial gold producer, has announced that, further to the previous announcements made on 27 and 30 March, it has secured a US$500 000 advance to assist with short-term working capital from its gold offtake partner which will be received on 5 April 2023. The primary repayment mechanism will be executed by offsetting US$100 000 against monthly deliveries from July to November 2023 inclusive. The interest rate being charged is SOFR + 4.5% per annum.
Additionally, Bridge Barn, a company owned and controlled by Mr Nathaniel le Roux, non-executive Director, and provider of debt funding to the Company, has agreed to postpone all interest payments that are currently due and payable by the Company to Bridge Barn up to and including 1 December 2023. The total of the interest payments being deferred is £450 000.
The deferral of interest payments constitutes a related party transaction pursuant to AIM Rule 13 (the "Related Party Transaction"). The independent Directors consider, having consulted with Shore Capital, the Company's nominated adviser, that the terms of the Related Party Transaction are fair and reasonable insofar as Shareholders are concerned.
Commencement of long hole stoping
In line with the update provided on 27 March, the Company is pleased to report that it commenced long hole stope mining yesterday with the first blast in the eastern section of the 430 West drive, with first ore being delivered to the processing plant ROM pad for processing today to produce gold concentrate for sale. The first stope was completely drilled (70 holes, 950 m of drilling) over the last 10 days within the expected timeframe. This is a reflection of the team’s dedication to transition the mine into long hole stope mining.
The Company is currently conducting long hole stoping along a 115 m strike in the eastern section of the 430 West drive.