the herald

CHRIS SANGSTER, chief executive of Scotgold, insisted investors should “not really” be worried about the miner’s finances after the Australian Securities Exchange quizzed it on its cash burn.
Scotgold, which is listed on the UK’S Alternative Investment Market and the Australian Securities Exchange, has permission to reopen Cononish gold mine near Tyndrum, in Argyll.
Pre-production cost estimates have soared from £12.3 million to £22.3m in the past three years but the company predicts it will recoup this within 18 months.
Asked if investors should be worried by ASX inquires into its finances, Mr Sangster said: “Not really.”
He said most companies listed on junior markets are not generating revenue.
The ASX asked if Scotgold may not have enough cash if it were to keep spending cash at the current rate?
Scotgold said it had sufficient cash to fund its activities.
“In addition to the cash on hand at March 31, 2012, of $363,000 (£227,000) the company has received $187,929 by way of options exercised in April,” it said.
It added that exploration work is by its nature discretionary and Scotgold plans to raise debt and equity.
“Current discussions with both equity and debt providers gives the board confidence that a capital raising to support the continuing operations of the company is achievable,” it said.