Owners issue warning over future of Scotland's only gold mine
- Published
The Cononish mine has been in development since 2007
The owner of Scotland's only gold mine has issued a warning about its future and suspended trading in its shares.
Scotgold Resources says it needs to raise significant funds to allow the company to continue as a going concern.
The firm reviewed its operations in July following "disappointing" production figures for the first half of the year.
It said at the time the third-party review would "recalibrate" its mine plan at Cononish, near Tyndrum.
Production was hit in the first quarter of this year after a key development was halted.
Only 758 ounces of gold were produced between January and March, although gold concentrate production steadily increased in the second quarter to reach 1,556 ounces.
The company said 1,033 ounces of gold were produced in July.
Scotgold chief executive Phil Day informed the company in June that he was stepping down in order to spend more time with his family in Australia.
In a new statement, Scotgold Resources said: "The company is actively seeking additional financing and discussions are in an advanced stage and, should they materialise, are expected to provide sufficient funding for the company to continue as a going concern.
"The outcome of the funding discussions is highly uncertain and if the company cannot conclude a significant fundraise, it will cast material uncertainty for the company to continue as a going concern."
It's been a rollercoaster year for the Cononish mine.
In January, there were high hopes it was on the brink of success. After a decade of toil and setbacks, preparations were nearly complete.
The mine's chief executive, Phil Day, told me that gold extraction would increase. By the year end, the company aimed to be bringing out millions of pounds worth of gold each month.
And in future? New gold mines in the Highlands, perhaps. "The name of the game is to grow, grow, grow," he said.
That was the plan, the goal, the dream.
But in June, Mr Day resigned abruptly.
Production hadn't gone to plan. Results from the first half of the year were disappointing and a review of production was ordered.
Now trading in shares has been suspended.
By any standards, this is a reversal of fortune. And a reminder, maybe, of how much is uncertain when it comes to gold.