re: Ann: RSA Grant of up to $1,000,000 from S...
From a mate of mine ...
DJ UPDATE: Scotgold Resources Gets Grant, Seeks Mine Permission
LONDON (Dow Jones)--Scottish gold miner Scotgold Resources Ltd. (SGZ.LN) said Tuesday it has accepted an offer of a Regional Selective Assistance grant of up to GBP600,000 in respect of the Cononish gold and silver project from Scottish Enterprise, and expects to reapply for planning permission for the mine within two months.
Chief Executive Chris Sangster told Dow Jones Newswires that the grant is payable in installments and is conditional on the creation of around 50 new jobs, capital expenditure targets and most importantly getting planning permission for the mine and processing facility.
The mine, which is estimated to contain up to 160,000 troy ounces of gold, is located in the Loch Lomond and Trossachs National Park. Scotgold first applied for planning permission in January 2010, but it was rejected following concerns about the visual impact of the processing facility on the landscape.
Since the rejection, Scotgold has held a number of discussions with the national park regarding the reasons for refusal and is confident it can mitigate the impacts that arose, Sangster said, adding talks have proceeded well.
To mitigate the National Park's concerns Scotgold will halve the size of the processing facility and reduce the size of additional waste material dump by storing it underground, Sangster said.
He hopes to resubmit the application in the next month or two and would expect a decision towards the end of the third quarter.
If Scotgold is successful with the planning permission, the project should take around 15 months and require GBP12.5 million in capital expenditure to get into production. Sangster said the company is working on raising the required capital at the moment, adding it would likely be a "traditional combination of project financing" through a mixture of equity and debt.
Scotgold shares at 1605 GMT were up 0.75 pence, or 14.6%, at 5.9 pence in a slightly lower Alternative Investment Market
... more news will follow ...
SGZ Price at posting:
7.1¢ Sentiment: Hold Disclosure: Held
