TIDMSGZ
RNS Number : 5149P
Scotgold Resources Ltd
10 February 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO
SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF
SUCH JURISDICTION .
This Announcement does not constitute a prospectus or offering
memorandum or an offer in respect of any securities and is not
intended to provide the basis for any investment decision in
respect of Scotgold Resources Limited or other evaluation of any
securities of Scotgold Resources Limited or any other entity and
should not be considered as a recommendation that any investor
should subscribe for or purchase any such securities .
This Announcement contains inside information for the purposes
of the UK version of the market abuse regulation (EU No . 596/2014)
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR"). In addition,
market soundings (as defined in UK MAR) were taken in respect of
certain of the matters contained in this Announcement, with the
result that certain persons became aware of such inside
information, as permitted by UK MAR. Upon the publication of this
Announcement, this inside information is now considered to be in
the public domain and such persons shall therefore cease to be in
possession of inside information .
For immediate release
10 February 2023
Scotgold Resources Limited
("Scotgold " or the "Company")
Results of Capital Raise
Scotgold Resources Limited ("Scotgold" or the "Company") (AIM:
SGZ), the gold exploration and production company focused on
Scotland , is pleased to announce that following the accelerated
bookbuild which was announced on 9 February 2023, the Company has
conditionally raised gross proceeds of GBP2.5 million (US$3.05
million) through the Capital Raising (the "Placing") of, and
subscriptions by certain directors of the Company and a significant
shareholder (the "Subscription" or "Subscriptions") for, 6,250,000
new Ordinary Shares ("Placing Shares" and "Subscription Shares") at
a price of 40p (the "Placing Price") per share.
Shore Capital Stockbrokers ("Shore Capital") acted as Sole
Bookrunner.
Capitalised terms used in this announcement (this
"Announcement") have the meanings given to them in the launch
announcement, unless the context provides otherwise.
Highlights
-- The Company has conditionally raised, in aggregate, GBP2.5
million (US$3.05 million) at a price of 40 pence per new Ordinary
Share.
-- Seven Directors of Scotgold and a significant shareholder are
participating in the Subscription for a total of 1,435,000
Subscription Shares with a total value of GBP574,000
(US$700,280).
-- Conditionally, in aggregate, a total of 6,250,000 New Shares
will therefore be issued, representing approximately 9.48 per cent.
of the enlarged share capital.
Retail Offer
As part of the Capital Raising, the Company announced on 9
February 2023 that it was launching a separate retail offer of up
to 1,250,000 new Ordinary Shares at the Placing Price on the
BookBuild Platform to raise up to a further GBP500,000
(approximately US$609,000) to provide existing retail shareholders
in the United Kingdom with an opportunity to participate in the
Capital Raising. A separate announcement will be made on the result
of the Retail Offer, expected to be released on 16 February
2023.
Admission
Application will be made for the admission of the Capital
Raising Shares to trading on the AIM market of London Stock
Exchange plc ("Admission"). It is expected that such Admission will
take place at or around 8.00 a.m. (London time) on 17 February
2023.
Related Party Transactions
The participation of the Subscribing Directors in the
Subscription constitutes a related party transaction pursuant to
AIM Rule 13 (the "Subscription Related Party Transaction"). The
independent Director considers, having consulted with Shore Capital
and Corporate Limited ("Shore Capital"), the Company's nominated
adviser, that the terms of the Subscription Related Party
Transaction are fair and reasonable insofar as Shareholders are
concerned.
Further to the Capital Raising, Bridge Barn Limited, a company
owned and controlled by Mr Nathaniel le Roux and provider of debt
funding to the Company, has agreed the option to defer a total of
GBP2.5 million capital repayments due by the Company in calendar
year 2023 by up to 9 months from the due date. The loan agreement
with Bridge Barn Limited has the option to be amended as
follows:
-- At Scotgold's option, repayment of each of these principal
tranches may be deferred by up to 9 months from the due date;
and
-- In the event of deferral, an interest rate of 13%
(non-compounding) shall apply for the deferral period. The current
interest rate is 9%.
The potential deferral of capital repayments would be used to
further exploration work - Resource Definition drilling in Cononish
and exploration work on the wider Grampians area.
The deferral of capital repayments constitutes a related party
transaction pursuant to AIM Rule 13 (the "Loan Related Party
Transaction"). The independent Directors consider, having consulted
with Shore Capital, the Company's nominated adviser, that the terms
of the Loan Related Party Transaction are fair and reasonable
insofar as Shareholders are concerned.
Enquiries :
Scotgold Resources Limited Via Celicourt Communications
Phil Day, Chief Executive Officer
Shore Capital Stockbrokers Limited (NOMAD,
Broker, Sole Bookrunner)
Toby Gibbs / John More / Tom Knibbs +44 207 408 4050
Celicourt Communications (Financial PR) Tel +44 (0) 774 8843
Felicity Winkles 871
About Scotgold Resources Limited
Scotgold Resources Ltd (AIM:SGZ), is Scotland's first commercial
gold producer. The Company poured first gold in November 2020 at
its Cononish Gold and Silver Mine ('Cononish) in Tyndrum, Scotland
and is developing it into a +23,500-ounce gold mine per annum.
Cononish is a high-grade underground mining operation with a
central processing plant producing gold concentrate for off-take
and gold doré for the Scottish Jewellery industry. The mine has
anticipated forecast operating costs of c.GBP610 per ounce in Q4
2023, which will place Cononish in the lowest quartile of gold
mining operations globally.
It is Scotgold's vision to build a mid-tier gold mining company
in Scotland with multiple operations in the country that enhance
the local environment and economy in ways that have an enduring
positive impact.
Market Abuse Regulation
This Announcement is released by Scotgold Resources Limited and
contains inside information for the purposes of UK MAR and is
disclosed in accordance with the Company's obligations under UK
MAR. The person who arranged for the release of this Announcement
on behalf of Scotgold Resources Limited was Phil Day, Chief
Executive Officer.
Important Notices
Shore Capital is a member of the London Stock Exchange and is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority (the "FCA"). Shore Capital is acting exclusively
for the Company and no one else in connection with the Placing, and
Shore Capital each not be responsible to anyone (including any
Placees) other than the Company for providing the protections
afforded to its clients or for providing advice in relation to the
Placing or any other matters referred to in this Announcement.
Forward-looking statements
This Announcement contains statements about Scotgold that are or
may be deemed to be "forward-looking statements".
All statements, other than statements of historical facts,
included in this Announcement may be forward-looking statements.
Without limitation, any statements preceded or followed by, or that
include, the words "targets", "plans", "believes", "expects",
"aims", "intends", "will", "may", "should", "anticipates",
"estimates", "projects", "would", "could", "continue" or words or
terms of similar substance or the negative thereof, are
forward-looking statements. Forward-looking statements include,
without limitation, statements relating to the following: (i)
future capital expenditures, expenses, revenues, earnings,
synergies, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects and (ii) business and
management strategies and the expansion and growth of the
operations of Scotgold.
These forward-looking statements are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of any such person, or
industry results, to be materially different from any results,
performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of such persons and the environment in which
each will operate in the future. Investors should not place undue
reliance on such forward-looking statements and, save as is
required by law or regulation (including to meet the requirements
of the AIM Rules, UK MAR, the Prospectus Rules and/or the FSMA),
Scotgold does not undertake any obligation to update publicly or
revise any forward-looking statements (including to reflect any
change in expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based).
All subsequent oral or written forward-looking statements
attributed to Scotgold or any persons acting on their behalf are
expressly qualified in their entirety by the cautionary statement
above. All forward-looking statements contained in this
Announcement are based on information available to the Directors at
the date of this Announcement, unless some other time is specified
in relation to them,
and the posting or receipt of this Announcement shall not give
rise to any implication that there has been no change in the facts
set forth herein since such date.
No statement in this Announcement is intended to be a profit
forecast and no statement in this Announcement should be
interpreted to mean that earnings or losses per share of the
Company for the current or future financial years would necessarily
match or exceed the historical published earnings or losses per
share of the Company.
The New Shares will not be admitted to trading on any stock
exchange other than AIM.
Neither the content of the Company's website (or any other
website) nor the content of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this Announcement.
Information to Distributors
Solely for the purposes of the product governance requirements
contained within: (a) EU Directive 2014/65/EU on markets in
financial instruments, as amended ("MiFID II"); (b) Articles 9 and
10 of Commission Delegated Directive (EU) 2017/593 supplementing
MiFID II; and (c) local implementing measures (together, the "MiFID
II Product Governance Requirements"), and disclaiming all and any
liability, whether arising in tort, contract or otherwise, which
any "manufacturer" (for the purposes of the MiFID II Product
Governance Requirements) may otherwise have with respect thereto,
the Placing Shares have been subject to a product approval process,
which has determined that the Placing Shares are: (i) compatible
with an end target market of retail investors and investors who
meet the criteria of professional clients and eligible
counterparties, each as defined in MiFID II; and (ii) eligible for
distribution through all distribution channels as are permitted by
MiFID II (the "UK Target Market Assessment").
Solely for the purposes of the product governance requirements
contained within: (a) EU Directive 2014/65/EU on markets in
financial instruments, as amended ("MiFID II"); (b) Articles 9 and
10 of Commission Delegated Directive (EU) 2017/593 supplementing
MiFID II; and (c) local implementing measures (together, the "MiFID
II Product Governance Requirements"), and disclaiming all and any
liability, whether arising in tort, contract or otherwise, which
any "manufacturer" (for the purposes of the MiFID II Product
Governance Requirements) may otherwise have with respect thereto,
the Placing Shares have been subject to a product approval process,
which has determined that the Placing Shares are: (i) compatible
with an end target market of retail investors and investors who
meet the criteria of professional clients and eligible
counterparties, each as defined in MiFID II; and (ii) eligible for
distribution through all distribution channels as are permitted by
MiFID II (the "EU Target Market Assessment" and, together with the
UK Target Market Assessment, the "Target Market Assessments").
Notwithstanding the Target Market Assessments, distributors
should note that: the price of the Placing Shares may decline and
investors could lose all or part of their investment; Placing
Shares offer no guaranteed income and no capital protection; and an
investment in Placing Shares is compatible only with investors who
do not need a guaranteed income or capital protection, who (either
alone or in conjunction with an appropriate financial or other
adviser) are capable of evaluating the merits and risks of such an
investment and who have sufficient resources to be able to bear any
losses that may result therefrom. The Target Market Assessments are
without prejudice to the requirements of any contractual, legal or
regulatory selling restrictions in relation to the Placing.
Furthermore, it is noted that, notwithstanding the Target Market
Assessments, the Joint Bookrunners will only procure investors who
meet the criteria of professional clients and eligible
counterparties.
For the avoidance of doubt, the Target Market Assessments do not
constitute: (a) an assessment of suitability or appropriateness for
the purposes of MiFID II or Chapters 9A or 10A respectively of the
FCA Handbook Conduct of Business Sourcebook ; or (b) a
recommendation to any investor or group of investors to invest in,
or purchase, or take any other action whatsoever with respect to
Placing Shares.
Each distributor is responsible for undertaking its own target
market assessment in respect of the Placing Shares and determining
appropriate distribution channels.
The notification below, made in accordance with the requirements
of the EU Market Abuse Regulation, provides further details of
above transactions.
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Peter Hetherington
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Chairman
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 250,000
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Phil Day
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status CEO
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 87,500
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Nathaniel Le Roux
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 587,500
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Ian Proctor
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 62,500
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name William Styslinger III
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 281,250
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Richard Barker
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 25,000
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name Evan Spencer
--------------------------- --------------------------------------
Reason for the notification
2
-------------------------------------------------------------------
a) Position/status Non-Executive Director
--------------------------- --------------------------------------
b) Initial notification Initial notification
/Amendment
--------------------------- --------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
-------------------------------------------------------------------
a) Name Scotgold Resources Limited
--------------------------- --------------------------------------
b) LEI 213800HL5A2K7LW2G360
--------------------------- --------------------------------------
Details of the transaction(s): section to be repeated
4 for (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-------------------------------------------------------------------
a) Description of the Ordinary shares in the Company
financial instrument,
type of instrument
AU000XINEAK5
Identification code
--------------------------- --------------------------------------
b) Nature of the transaction Purchase of shares
--------------------------- --------------------------------------
c) Price(s) and volume(s) Purchase of shares: Price Volume(s)
40p 78,750
----------
--------------------------- --------------------------------------
d) Aggregated information
- Aggregated volume N/A
- Price
- Total Value
--------------------------- --------------------------------------
e) Date of the transactions 9 February 2023
--------------------------- --------------------------------------
f) Place of the transaction LSE, AIM Market (AIMX)
--------------------------- --------------------------------------
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END
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