Scotgold (ASX:SGZ, AIM:SGZ) has appointed Richard Gray as...

Scotgold (ASX:SGZ, AIM:SGZ) has appointed Richard Gray as Managing Director and Chief Executive Officer and Nathaniel le Roux as Non-Executive Director.

Richard Gray most recently served as Head of Mining & Expansion at Avocet Mining and has extensive international experience in both underground and open pit mine operations.

Nathaniel le Roux was Chief Executive of IG Group between 2002 and 2006 and is currently an independent director of the London Metal Exchange.

In addition, Scotgold intends to undertake a 1 for 1 non-renounceable rights issue at an issue price of $0.006 per share.

Nathaniel le Roux and new Non-Executive Chairman Alexander Littlejohn have agreed to fully underwrite the rights issue.

Funds raised will be used for ongoing mine development studies at Cononish, further debt retirement, exploration and working capital purposes.

These board changes, together with the funds which are to be raised in the forthcoming rights issue, represent a significant milestone for the company.

The increased technical depth of the management team and financial strength will enable the company to move forward with the review and optimisation of the development plan for Cononish.

The aim is to produce a financeable plan under the current market conditions which can be implemented in the coming year.

Exploration prospects identified to date and potential new opportunities will also be reviewed.

Scotgold is focused on the development of Scotland’s first commercial gold mine.

Today's transaction enables Scotgold to rapidly progress towards the point at which the full development financing can be sought.