Argyll gold mine starts move to commercialisation

The Scotgold company holding the rights to mine for silver and gold at Cononish in North Argyll, floated on AIM [Alternative Investment Market] back in February 2010, has raised the first £800,000 of the £20 million in total that it will eventually need to develop the mine.

It has issues over 15 million new shares at 3.1 pence and extended by £350,000 an existing loan of £1.2 million; telling its shareholders that it will need an overall £10 million in equity and £10 million in loans for the commercialisation of the asset.

Scotgold expects to extract 74,000 ounces of silver and 21,000 ounces of gold from Cononish. While pre-production costs have been driven by commodity prices to a 100% hike in the last three years, the company estimates that eighteen months of production will recover its development costs.

The new shares issue element of the initial fundraising for development saw Scotgold’s overall share value fall to a year-long low of 3.375p.

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One Response to Argyll gold mine starts move to commercialisation

  1. Is anyone in the mining and investment industries still confused?
    In previous observations I have explained exactly why the 1592 Mines and Metals Act prevents the Crown Estate from issuing so called Mines Royal licences for exploration or exploitation of gold or silver mines, or any other kind of mineral mining for that matter, in Scotland.
    Have shareholders been informed of the very straightforward legal position, or does the company intend to quietly pay the 10% to the Crown Estate and, with mutual sniggering sweep the latter quango’s misleading claims to English Mines royal duties and extra fees in Scotland under the carpet?
    If some kind of mutually-convenient & private cover up is going on, it needs to be exposed, before current and future shareholders get hurt. After all, we can’t allow the Crown Estate’s directors to profit from anti-statutory abuses of ancient mining laws, by implication of offence against the real Crown, if their quango-crown mismanagement is challenged. That is clearly an abuse of their third-hand privileges, gained under the English civil list rules. Geo iii would be scandalised!
    To clarify, if the inappropriate Crown Esate Mines Royal demand is more than the permitted 10%, shareholders should be able to protest and reclaim their losses. If the demand is less than 10%, this would be a growing debt which the Crown could reclaim down the line. Neither outcome is acceptable in a democratic society. Do we live in a democratic society, subject to democratic laws?
    As the issues have already been explained in enough detail for even the most legally untrained Crown Estate advisor to be able to suggest a rescue plan, we are left guessing, which kind of confession is most likely.
    In a Cononish soap opera the Scottish government would be giving the Crown Estate more rope to hang itself out to dry, and the plot line would thicken week by week, with a very sexy, or very predictable conclusion. Is the Crown Estate quango depending on the yawn factor?
    A number of academics have contacted me privately to congratulate on my groundbreaking and revealing research on repealed Mines Royal laws in Scotland, England and Wales. A few have expressed (jokingly I think) concern that I might be locked in the Tower (possibly for my own safety?), or that I might be bumped off by some secret organisation or society. All silly of course. We still live in a United Kingdom in which ordinary citizens can appeal to the government and press and, ultimately the Monarch to apply the laws in force to protect the rights of the subject/citizen. The most important action in this case must be to protect the citizen as shareholder, against the vague and unlawful actions of a Treasury quango, which appears to be totally immune to inquiry under Freedom of Information laws.
    Give me the Head of the Crown Estate Commission, and I will show you an abuser of Royal Prerogative, who in an open debate would be ashamed but bound to admit the facts of past and ongoing maladministrations. Imposing repealed English laws in Scotland must really be the ultimate limit of legal exasperation.
    If I am in any way wrong about any of my legislative assessments and complaints and please, please, please, please put me right, before this does any further damage, if any has been wrongly done here, to the interests of the shareholders in this venture. There have been so many bankrupt mining ventures, in part due to the actions and inactions of the Crown Estate in the past. This must stop now!

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