Scotgold launches A$6m IPO

Perth-based gold exploration company Scotgold Resources has launched....

  Perth-based gold exploration company Scotgold Resources has launched an Initial Public Offer to raise up to A$6m ahead of its plans to list on the Australian Securities Exchange in 2008.The Scotgold prospectus is for the issue of 16 million shares at $0.25 each to raise $4m, with the ability to raise up to a further $2m in oversubscriptions. Scotgold said it will use the funds to pursue a number of advanced gold exploration targets in Scotland. The IPO opened in late November and is planned to close on December 21, 2007. Scotgold’s proposed listing date is January 15, 2008. Scotgold Non-Executive Chairman, Shane Sadleir said the company aimed to establish a gold mine at its key project of Cononish in Western Scotland and aims to become the only significant gold mining company in Scotland, a country not usually thought of for its mining prospects. Cononish, 90km north of Glasgow and part of the Scotgold’s Grampian gold project, is 100% owned by Scotgold and has been estimated to contain an historic resource of 564,656 tonnes grading 10.55g/t of gold and 55.0g/t of silver. Scotgold said it plans to undertake an assessment of the known gold and silver mineralisation at Cononish with the aim of determining a JORC-compliant resource. The company said drilling of defined exploration targets in 2008 will focus on increasing the extent of known mineralisation around Cononish. “Scotgold are in a great position with Cononish,” 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.” Scotgold acquired the Cononish project through the acquisition of UK company Fynegold Exploration, in May this year, which also brought the company an extensive gold, silver and base metal exploration database covering Scotgold’s entire Grampian gold project. Scotgold’s exploration licenses cover about 2,200sqkm of Central Scotland and the company said it is eager to commence regional exploration activities over a number of exciting gold prospects.