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Scottish gold and silver miner on verge of collapse

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Scotland’s only gold mining company is close to going into administration, according to its main creditor.

Nat le Roux, who owns a third of shares in Scotgold Resources, announced he is resigning from the board “with considerable regret”.

Confirming administrators are due to be appointed soon, he said he faced an “unavoidable conflict of interest” if he stayed on the board.

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The company operates the Cononish gold mine near Tyndrum.

Its management was bullish about its prospects at the start of this year, having trebled gold production during 2022 to more than 8,500 ounces (241kg).

Scotgold Resources sold more than 1,000 tonnes of gold concentrate last year for nearly £12m.

The company also holds licences to drill for gold in other parts of the central Highlands of Scotland, where it sees good prospects.

But subsequent mining developments and the need for more capital have thrown the firm into a financial crisis.

In July, it said the first half of the year was “disappointing” in terms of gold production and development of the underground mine at Cononish.

It added its long-term future would depend on the quantity and grade of ore mined and processed, and whether that remains within the company’s forecasts.

 

Source: BBC News

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