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Scotgold: Scotland's only goldmine goes into administration

SCOTGOLD RESOURCES Scotgold, the owners of Scotland's only gold mine, have called in administrators over financial difficultiesSCOTGOLD RESOURCES
Scotgold failed to secure new investment after talks broke down earlier this month

The owners of Scotland's only goldmine have called in administrators after falling into financial difficulty.

Scotgold Resources, which operates the Cononish mine near Tyndrum, announced the move at the London Stock Exchange on Friday.

The firm had been hopeful of attracting new investment earlier this month, but talks proved unsuccessful.

The majority of its 80-strong workforce has been on unpaid leave since September.

Daniel Bredenkamp and Christopher Pattinson of Pitcher Partners Accountants and Advisors have been appointed administrators.

The move comes just weeks after the mine's main creditor, Nat Le Roux, announced his resignation from its board.

Mr Le Roux said it was "likely" administrators would be called in "soon" when he stepped down on 7 November.

SGZ Cononish, the firm's UK business and only "substantive asset," is not yet in administration but is expected to follow suit in days.

Gold production from the mine had trebled in 2022 to more than 8,500 ounces (241kg), selling more than 1,000 tonnes of gold concentrate for about £12m.

But in July, the firm described the first half of 2023 as "disappointing" in terms of gold production and development of the mine.

Subsequent mining developments and the need for more capital led the company to seek new investment in October.

Those talks collapsed without securing any further funding.

Trading in shares of Scotgold Resources has been suspended since 11 September.

A statement issued to the Stock Exchange read: "The administrators have assumed control of the company and will work with the board of directors during the administration period to maximise the outcome for all stakeholders of the company.

"The administrators will provide updates throughout the administration by way of announcements to the alternative investment market and ask that shareholders refrain from contacting the administrators' office at this time."