EXTENSION OF RMB FACILITY TERMINATION DATE

RNS Number : 9962K

Scotgold Resources Ltd

30 June 2014

 



Scotgold Resources Limited

EXTENSION OF RMB FACILITY TERMINATION DATE

Scotgold Resources Limited ("Scotgold" or the "Company") is pleased to announce that RMB Australia Holdings Limited ("RMB") has agreed to extend the termination date of the Company's £1.5m facility with RMB (the "RMB Facility") to 11 August 2014.

RMB and Scotgold have agreed to this relatively short extension of the RMB Facility to enable the Company's shareholders to vote at the General Meeting to be held on 30 July 2014 and, subject to shareholder approval, for the Nat le Roux and co-investors ('NlR Group') fund raising to proceed as described in the recent Notice of Meeting and Explanatory Memorandum.

On closure of the NlR Group fund raise, AUD $1M of the AUD$1.375M aggregate proceeds will be used to repay a portion of the outstanding RMB Facility and accumulated interest to RMB which will leave a balance of £1.18M owed to RMB. The balance of the fund raise of AUD$ 0.375M will be used to fund the Company's operations.

As noted in the Release of 2 June 2014 (Update to Heads of Agreement and Placing), RMB is also seeking the permission of its investment committee to further extend the term of the loan to 31^st December 2015 if the General Meeting approves the proposed funding from the NIR Group.  The further extension is likely to be subject to certain other conditions in favour of RMB that are yet to be agreed.

For further information please contact:

United Kingdom:             

Scotgold Resources Limited       Westhouse Securities Limited        Bankside Consultants

John Bentley (Chairman)           Richard Baty / Martin Davison       Simon Rothschild

Tel: [phone]         

Chris Sangster (CEO)                 

Tel: [phone]         Tel: [phone]            Tel [phone]

Australia:              

Scotgold Resources Limited                  

Peter Newcomb

(Co. Secretary)                

Tel:  [phone]

 

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