Scotgold Resources hopes to mine gold at Cononish, in the shadow of Ben Lui.
Would-be miner Scotgold Resources revealed it has raised a further £400,000 from investors as it seeks to open its prospect in the Loch Lomond and the Trossachs National Park.
The company said it had successfully tapped existing shareholders for the cash, after a 90% take up of the new rights issue. A further open placement to make up the shortfall is expected.
Executive chairman John Bentley said the fundraising, alongside the extension of a £1.5m loan from equity investor RMB Australia Holdings, marked an “excellent” result for his company.
Scotgold has been seeking to raise cash to support its aim of opening Scotland’s first gold mine at Cononish, near Tyndrum.
But its fortunes have been hit by the falling gold price and high development costs. A newly pared-down development scheme, tareting higher grade material, was announced at the launch of the rights issue in late November.
It had initially been anticipated that full development of the site could produce gold and silver worth up to £17 million per year, over an anticipated seven-year lifespan.
