- Scotgold Resources said it had raised another £2.7m of debt and equity to cover an increase in the cost estimate of its Cononish gold and silver mine in Scotland partly caused by construction delays.

First gold from Cononish was now expected in February, compared to December as originally scheduled, mostly due to civil engineering design delays.

The delay, plus more expensive earthworks requirements and the bringing forward of some equipment spending, had pushed up the project's budget by £2.5m.

Scotgold said it had consequently extended an existing bridging facility by £1.5m and raised around £1.2m from an issue of new shares in the company at 35p each, mostly to directors and management.

'Overall progress on the development of Cononish is pleasing,' chief executive Richard Gray said.

'There is a short delay in production of first gold from our previous expectations, but a stockpile of ore will be accumulated during this period which will provide an opportunity to exceed targets later in the year.'

'The combination of the gold price being in excess of £1,200 per ounce, and the pipeline of projects that we anticipate will result from our Grampian exploration work, bode well for the Company's long term outlook."

At 1:28pm: [LON:SGZ] Scotgold Resources Ltd share price was -1.5p at 35p

Story provided by