Issue of Equity

RNS Number : 7149Z

Scotgold Resources Ltd

19 January 2011

 

 

SCOTGOLD RESOURCES LIMITED ("SCOTGOLD" OR THE "COMPANY")

PLACES 14.5m SHARES WITH A  STRATEGIC INVESTOR

Scotgold (ASX:SGZ, AIM: SGZ) wishes to advise that it has raised ₤616,250 (A$986,000) through the placement of 14.5 million ordinary fully-paid shares in the Company (the "Placing Shares"), at a consideration of ₤0.0425 (A$0.068) per share.  The Placing Shares have been issued together with one free attaching option for every two Placing Shares subscribed for.  The options, which are tradeable on the ASX, are exercisable immediately at a price of $0.08 per share and expire on 30 April 2012.

The Placing Shares have been placed with Kenglo One Limited ("Kenglo"), an investment company incorporated in Jersey in the  Channel Islands specialising in natural resources. Kenglo already has significant holdings in Galantas Gold Corporation, which operates a gold mine in Northern Ireland and TomCo Energy Plc, an unlisted company which holds substantial oil shale leases in Utah. Kenglo has agreed with the Company that it will not dispose of its holding for a period of 12 months from the date of issue.    

Following the placing Kenglo has an interest in 14,500,000 shares representing 9% of the Company's enlarged share capital.  

The Company also announces that it has issued a further 15,526 ordinary shares in the Company following the exercise of options by certain shareholders at an exercise price of A$0.08 per share (the "Option Shares").

Application has been made for the Placing Shares and the Option Shares to be admitted to AIM and it is anticipated that they will commence trading on 24 January 2011.

Following the placing and the exercise of options, the Company has a total of 160,955,572 ordinary shares in issue.  The figure of 160,955,572 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.

Commenting on the placing, Scotgold Chairman John Bentley said: "I am very pleased to welcome Kenglo as a new major shareholder of the Company.  The proceeds of the placement will be used for general working capital and for the ongoing exploration programme."

For further information please contact:

United Kingdom:

Scotgold Resources Limited	Westhouse Securities Limited	Bankside Consultants
John Bentley (Chairman) Chris Sangster (CEO)	Richard Baty / Petre Norton	Simon Rothschild /Louise Mason
Tel: [phone]	Tel: [phone]	Tel [phone]

Australia:

Scotgold Resources Limited	Professional Public Relations
Shane Sadleir (Non-Executive Director)	Karen Oswald
Tel:        [phone] Mobile: [phone]	Tel:      [phone] Mobile: [phone]

 

END

 

 

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