Scotgold Resources wins shareholder backing

Mining firm Scotgold Resources has won support from shareholders for its rights issue, it has announced.

The company said eligible shareholders had applied to take up 178% of the rights issue.

This means the firm has reached its target of raising £640,000 although it could have achieved a higher price.

Scotgold suffered a blow earlier this year when its plans for mining for gold near Tyndrum were turned down. It is now appealing the decision.

A statement to the stock exchange said: "The company is pleased with the level of shareholder support and thanks the shareholders who participated in the rights issue."