The terms of that agreement where similar to this RMB agreement below for Sutter :
• The lender will be RMB Australia Holdings Limited (“RMBAH”);
• The Project finance facility will be a secured prepaid gold facility in the amount of US$20 million;
• Proceeds will be used to repay the existing RMBAH facility in the approximate amount of US$6.5 million and provide approximately 70% of the budgeted funding required for the development and construction of the Lincoln Project;
• The facility amount will be drawn down monthly by Sutter during the construction and development period;
• Sutter will deliver 50% of monthly gold production subject to a minimum 900 ounces per month beginning at the end of the 13th month from the first draw down, coinciding with the first full month of production in accordance with the Project development schedule;
• Sutter will receive from RMBAH a Delivery Price of approximately US$950 per ounce delivered with the final Delivery Price to be determined based on spot GOLD PRICES at the time of closing;
• Total gold production deliverable to RMBAH is limited to 53,027 ounces;
• Sutter has the option of pre delivering against the facility at its discretion.
Our old RMB agreement was for half of our then projected 20,200 ounce annual production as was Sutter's.
Our then grades where far better than Sutter's and our then projected pay back time was half of Sutter's
New
We have paid off our £1.2m RMB DEBT
We have increased our resource from 169,200 to 266,000 OUNCES OF GOLD with 248,000 ounces being Measured and Indicated with a gold grade of 14.3g/t and silver of 59.9g/t
We have been granted planning permission for 24/6 processing plant ( previously 16/6 )
We have seen the new NP boss say he believes Scotgold are gearing up for development with their projection being for development hopefully in the summer .
We have seen the company presentation where the opportunities are outlined :
•Low capex, short payback project in low risk jurisdiction
•Can develop COMPETITIVE advantage in high quality mining of small orebodies in sensitive areas
•Prospects to develop pipeline of similar projects in Scotland and elsewhere
•Grants are likely to be available. DEBT funding will significantly enhance returns to shareholders
•Strong support from local communities !
75% of the company shares are held by 20 shareholders
We already had low costs and with the improved grades we will have even better lower costs , with 14.3g/t Au and 59.9 g/t Ag we will be just over 2 Tonnes per Au equ ounce . When you consider we have been told that the 24/6 processing plant will have no negative effect on our annual production but could have a significant effect on our Capex its all good for over 30,000 ounces a year .
SGZ Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
