NON-RENOUNCEABLE RIGHTS ISSUE

RNS Number : 8421S

Scotgold Resources Ltd

17 September 2010

 



Scotgold Resources Limited ("Scotgold" or the "Company")

NON-RENOUNCEABLE RIGHTS ISSUE OF SHARES AND OPTIONS

Scotgold Resources Limited (ASX: SGZ) (Company) is pleased to announce a non-renounceable rights issue of shares on the basis of one Share for every four Shares held at the record date of 28 September 2010 at an issue price of $0.035 per Share together with one free attaching Option for every two shares subscribed for, exercisable at $0.08 and expiring on 30 April 2012. (Rights Issue).

The maximum number of shares to be issued under the Rights Issue is 29,326,690 to raise $1,026,434.

Options to be issued under the Rights Issue will be a new class of security of the Company. The full terms and conditions of the Options are set out in the Prospectus. Shares issued upon conversion of the Options will rank equally with existing shares in the Company.

The Company will apply for official quotation of the Shares and Options. An Appendix 3B in respect of the Rights Issue accompanies this announcement.

A prospectus will be lodged with the ASIC and a copy provided to ASX on or about 17 September 2010 in respect of the Rights Issue.

The Offer is not underwritten.

The proposed timetable for the Rights Issue is as follows;

Summary of Important Dates* Announcement of Rights Issue Lodge Prospectus with ASIC Shares quoted ex-rights Record Date to determine Entitlements under the Rights Issue Opening Date and dispatch of Prospectus Closing Date for Rights Issue Offer Notification to ASX of under subscriptions Allotment of Options and dispatch of holding statements	16 September 2010 17 September 2010 22 September 2010 28 September 2010 5 October 2010 3 November 2010 8 November 2010 11 November 2010
*These dates are indicative only.  The Directors reserve the right to vary the key dates, without prior notice and subject to compliance with the Listing Rules.

The Company intends to apply the funds raised from the Rights Issue as follows;

a)    Meet costs on the Offer,

b)    Regional exploration programs at the Company's projects; and

c)    Administration including Cononish planning application.

For further information:

United Kingdom:

Scotgold Resources Limited	Westhouse Securities Limited	Bankside Consultants
Chris Sangster (CEO)	Richard Baty / Petre Norton	Simon Rothschild / Oliver Winters
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]

 

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