Scotgold hires wealth management firm to arrange up to £3m in loans
Aim-listed Scotgold Resources has entered into an agreement with wealth management company Fern Wealth to arrange the procurement of up to £3-million in loan funding from a syndicate of high-net-worth investors.
The gold company intends to use the proceeds received to fast-track optimisation initiatives at its Cononish gold and silver mine, in Tyndrum, Scotland, to achieve a gold production run rate of about 23 500 oz/y by the end of the first quarter of 2023.
Scotgold notes that its core optimisation initiatives for this year include the design, construction and commissioning of a tailings thickener – a cost-effective technology to improve the throughput and recoveries of concentrate product in the processing plant to achieve a monthly run rate of about 4 000 feed tonnes to the process plant by the end of the second quarter this year.
That will equate to a 16 000 oz/y to 17 500 oz/y run rate by the end of the second quarter.
Further, the company plans to enhance mining efficiencies of the underground mine to ensure continuous operations.
Lastly, it will design, construct and commission an ore sorter at the processing plant between the existing crushing unit and the mill to realise an increase in ounces of gold processed per tonne at lower tonnages and potentially lower capital and operational expenditure.
Due diligence is expected to be completed by the end of the second quarter of this year and the sorter, if approved, will be operational by the end of the first quarter of 2023.
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