Scotgold Resources has secured the final tranche of development funding for the construction of the Cononish gold mine in Scotland.

Through a combination of equity and secured debt, the company has raised a total of £9m, which together with existing cash reserves, is expected to be enough for the construction of the mine.

Around £4m, before expenses, has been raised through an oversubscribed placing and subscription of 14,545,455 new ordinary shares.

“This is a momentous occasion for the Company and for gold production in Scotland.”

The remaining £5m has been secured through a secured loan facility agreed with Bridge Barn, which is owned by Scotgold’s non-executive chairman Nathaniel le Roux.

Scotgold Resources CEO Richard Gray said: “This is a momentous occasion for the Company and for gold production in Scotland.

“We have seen a number of significant milestones achieved by the company in recent years, culminating now in what will be a new gold mining industry in the Scottish Highlands.”

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At full capacity, the Cononish mine will produce, on average, around 23,500 equivalent ounces of gold per year.

The company will now focus on finalising the necessary planning agreements, set to be completed in the coming weeks.

Meanwhile, the company has carried out site access preparations.

Furthermore, Scotgold noted that a detailed construction activity plan is currently being drawn up, and an application for a regional selective assistance (RSA) grant is being produced.

Following the conclusion of these activities, the company will determine the final project schedule.