Cash-strapped Scotgold places staff on unpaid leave
Embattled miner Scotgold, which operates Scotland’s only gold mine, said on Friday that it had initiated discussions with an administration specialist as a precautionary measure should it fail to secure financing to continue operating.
The company also announced that its staff had been placed on short-term unpaid leave to preserve funds, while it continued to advance financing discussions.
Scotgold reported that financing talks were at an advanced stage with confirmatory diligence being undertaken.
The firm also noted that a creditor had taken action, which the board hoped to resolve through negotiation of a repayment proposal.
“Should matters not be successfully resolved this could reduce the timescale to achieve a funding solution and necessitate an administration appointment, which of course it is hoped can be avoided.”
A third-party review of the Cononish mine suggested no fatal flaws in the mineral resource estimate or grade control modelling process.
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