Scotgold Resources to list today

Perth-based gold exploration company Scotgold Resources Ltd will step up plans....

  Perth-based gold exploration company Scotgold Resources Ltd will step up plans of becoming Scotland’s only significant gold mining company, after raising $4.9M through its recently closed Initial Public Offer (IPO) and confirming that it will list on the Australian Securities Exchange at 9.30am (WST) today.In November 2007 Scotgold launched a prospectus to raise 4 million through the issue of 16,000,000 shares at $0.25 each – with a further $2 million able to be raised with oversubscriptions.Montagu Stockbrokers was the Sponsoring Broker and Lead Manager to the issue. On listing Scotgold will have 63.4M shares on issue and a market capitalisation of $15.85M (at issue price).Scotgold Non-Executive Chairman Shane Sadleir said that, following the successful closure of the IPO, the company will now be working towards fast-tracking the establishment of a gold mine at its key project of Cononish in Western Scotland and becoming the only significant gold mining company in Scotland, a country not usually thought of for its mining prospects.“We have been overwhelmed by the market’s reaction to the IPO given it occurred so close to Christmas, but it is clear to us that people see the immense potential in our Scottish gold projects and our aggressive time-frame to get them into production.”“As a priority, Scotgold plans to undertake an assessment of the known gold and silver mineralisation at Cononish, 90km north of Glasgow, with the aim of determining a JORCcompliant resource in the first quarter of 2008,” Mr Sadleir said.“Much of the hard work has already been done for us, with the previous owners carrying out exploration on the project over some 15 years, including diamond drilling and the construction of a 1.2km tunnel along the vein, culminating with Planning Approval for a small mining operation of 25,000 ounces of gold per annum in 1996. A downturn in the gold price shortly after saw the project placed in care and maintenance for the next 10 years“.An initial review of historical data has been carried out, with drilling contracts expected to be signed shortly. Drilling of defined exploration targets in 2008 will focus on increasing the extent of known gold and silver mineralisation around Cononish and, subject to successful exploration, the preparation of a Bankable Feasibility Study, including an up-to-date Mine Plan and appropriate environmental management practices.Scotgold acquired the Cononish project through the acquisition of UK company, Fynegold Exploration, in May last year, which also brought the company an extensive gold, silver and base metal exploration database covering Scotgold’s entire Grampian gold project.The company’s 100% owned exploration licences cover about 2,200km of Central Scotland and the company is eager to commence regional exploration activities with a number of exciting gold prospects, including high-quality, ready-to-drill targets for lode-hosted gold mineralisation along the Tyndrum Fault Zone in Glen Fyne. “The successful implementation of gold mining operations would represent only stage 1 of an ambitious project for Scotgold”, Mr Sadleir said. “Unlike most other gold mining companies in the world, we hope to add value to the uniquely Scottish nature of the gold produced and intend to have early discussions with a number of local jewellery manufacturers.”