Boardroom changes at Tyndrum gold mine firm Scotgold

Scotgold plans to mine for precious metals at Glen Cononish, near Tyndrum

A company aiming to mine for gold in Stirlingshire has carried out a major boardroom shake-up.

Scotgold Resources is also planning a rights issue to reduce debts and raise funds for the new mine.

Richard Grey replaces Chris Sangster as managing director and chief executive, while Sandy Littlejohn takes over as chairman from John Bentley.

The firm said its top priority was pushing forward the Cononish mine development near Tyndrum.

Scotgold has struggled to finance the project, which aimed to dig for gold and silver, and has made several rights issues in recent years to raise funds.

'Significant milestone'

Mr Sangster is to stay on with the firm as a non-executive director, having been replaced by Mr Gray, who most recently served as head of mining and expansion at Avocet Mining.

Mr Bentley has resigned from the company, and is replaced as chairman by Mr Littlejohn, managing director of the Glasgow-based DTS Group of dental laboratories.

Nathaniel le Roux and Richard Harris have also joined Scotgold as non-executive directors.

In a stock market announcement, the firm said the changes were a "significant milestone".

"The increased technical depth of the management team and financial strength achieved through the restructuring will enable the company to move forward with its objectives," it said.

"The first priority is the review and optimisation of the development plan for Cononish, such that a financeable plan under the current market conditions can be implemented in the coming year."