SCOTGOLD Resources has raised one million Australian dollars (£888,310) under convertible note agreements which has allowed it to partially pay back its £1.5m loan with RMB Financial Holdings and extend the facility until December 2015.
The company, which is mining for gold and silver in Argyll, has cut the amount outstanding on the loan by £320,000 to £1.18 million, and settled the outstanding capitalised interest. It will use the balance raised by the convertible note agreements for working capital.
Nine million ordinary Scotgold shares have been issued to RMB Australia Holdings under the extension of the facility, alongside 30 million unlisted options exercisable at 0.69p on or before September 22, 2017.
Shareholders approved the convertible note agreements at its general meeting on July 30. It saw 104 million conversion shares issued to Nat le Roux, who made his fortune at spread-betting firm IG Group. Mr le Roux has built up a 15.61 per cent stake in Scotgold, according to the latest Reuters data.
Some 20 million conversion shares were issued to Richard Harris, who has a 4.1 per cent stake.
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