Scotgold to cease trading
Trading in the Scotgold's shares on AIM were suspended with effect from 11 September 2023.
Notwithstanding the suspension of trading in Scotgold's shares, the company have stated they will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM Rules.
As previously announced H1 2023 was disappointing in terms of gold production and development of the underground mine at Cononish in the Grampian region of Scotland.
The ability of the group to continue as a going concern over the long term was to remain dependent on the quantity and grade of ore mined and processed being within a reasonable tolerance of the forecast quantity and grade and adherence to the previously planned product shipment schedule.
A mine plan until July 2025 has been received and is under internal review.
Even though the plan is under review, Cononish needs significant new funding to increase ore production to a level that would achieve sustained profitability.
The underground work envisaged includes significant development, a drilling programme and further upgrades to power and ventilation.