Scotgold sees 'significant advancement' in Loch Lomond mine permitting

Scotgold Resources on Monday told investors that despite delays, "significant advancement" has been made in the permitting process of its Cononish Gold and Silver Mine, near Loch Lomond in Scotland.

The gold mining development firm said that all substantive matters relating to permitting and associated conditions have been progressed with the National Park Authority, but stated that establishing necessary agreements with third parties remained an ongoing process.

According to the current schedule, the AIM-traded company hopes to have these agreements in place and the resultant decision notice issued by the end of September.

Richard Gray, chief executive of Scotgold, said: "It is important to note that although frustrating, this delay will not have a material effect on the company's funding position and we continue to look forward to anticipated gold production and cashflow in 2019."

Procurement and recruitment activities have continued to be advanced in anticipation of the decision notice, with Fairpoint Engineering appointed as "client engineer".

"Although this final stage of the permitting process is taking longer than anticipated, we continue to make what preparations we can for the final development phase. Once the decision notice is received we will assess the impact of these early preparations on the project schedule and provide further guidance on the expected date for first gold production," said Gray.

Scotgold’s shares were down 1.96% at 25.00p at 1639 BST.