Perth-based Scotgold Resources Ltd plans to raise $4 million through its initial public offer to fund exploration of its gold, silver and base metals projects in Scotland.
The company, which will issue 16 million shares at 25 cents each to raise the money, owns an exploration project in the Grampian Highlands of Scotland's Midwest, as well as three granted exploration licences covering around 2,200 sqkm in central Scotland.
In addition to this, Scotgold owns the Cononish Gold and Silver Deposit, on which it plans to commence gold mining by 2010.
Drilling of defined exploration targets in 2008 is anticipated to increase the known resources around the existing deposit. Subject to successful exploration, the next year will be focussed on preparing a Bankable Feasibility Study, including an up-to-date Mine Plan and appropriate environmental management practices.
Scotgold will allow for oversubscriptions of up to a further 8 million shares at 25 cents each to raise a further $2 million. The offer is not underwritten.
Scotgold is chaired by Shane Beatty Sadleir in a non-executive capacity. He is joined on the board by chief executive Christopher Sangster, Roland Thom and Phillip Jackson. Edmond Edwards will serve as company secretary.
The company has appointed HLB Mann Judd as auditor and independent accountant, while Montagu Stockbrokers Pty Ltd will serve as sponsoring broker and lead manager. Price Sierakowski provided legal advice to the company.
The company plans to close its offer by December 14.
