TDI client Scotgold Resources have secured the final tranche of finance required to propel Cononish, the only commercial Scottish gold mine, into production.
Share prices soared when Scotgold (LON:SGZ) announced they had finalised the deal that will allow the mine to move into production later this year.
Having received £4m equity from the placing of shares (at mid-market price) they also secured a loan of £5m from Scotgold’s chairman Nat Le Roux, a long term and committed supporter of the project in what has been described as a ‘momentous occasion for gold production in Scotland’ by CEO Richard Gray.
TDI has worked with Scotgold over several years to generate interest from the Scottish jewellery community. We successfully placed 100% of the gold yielded from the 1-year Bulk Processing Trial with two prominent Scottish jewellers, achieving a premium of >30% of the gold spot price.
We marketed the first ever pour of the gold in 2016 which sold in the form of 1oz gold rounds, achieving an overall premium of 378% over spot.
Initially, the mine expects to produce around 3,000 tonnes of ore per month, increasing to 6,000 tonnes as the capacity builds. Once working at its full capacity, the mine is expected to produce an average of 23,500 ounces of gold annually.
Ore from the Cononish is particularly high-grade, approximately 11.1g of gold per tonne, meaning a low-cost per ounce for production.
The next steps for Scotgold are tying up a few practical ends before they begin on the construction of the mine and sourcing plant and machinery.
Whilst that happens, TDI continues to register interest from jewellers who wish to source the gold. We work closely with Scotgold, building a strong strategy for the gold sales, which are already anticipated to be in high demand.
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