Grampian Project Exploration Rights

RNS Number : 9227Q

Scotgold Resources Ltd

24 October 2019

 

Scotgold Resources Limited

24 October 2019

Scotgold Resources Limited

Grampian Project Exploration Rights

Scotgold Resources Limited (AIM: SGZ) ("Scotgold" or the "Company")  announces that its wholly owned subsidiary SGZ Grampian Ltd ("SGZ Grampian") has entered into thirteen new "Option Agreements" with Crown Estate Scotland which replace the five existing Option Agreements entered into on 5^th November 2015.

On 5^th November 2015, SGZ Grampian entered into five Option Agreements with Crown Estate Scotland covering an area of approximately 800km² each and for a term of 6 years.  These agreements provide SGZ Grampian with the right to a Mining Lease, should a development project be identified as a result of exploration undertaken by the Company within the Option Area and the relevant Planning Authority being minded to grant planning permission.

Under these agreements SGZ Grampian was required to reduce the area of each agreement to a maximum area of 250km² by the 3^rd anniversary of each agreement but had the right to apply for new agreements to cover "shed" areas. The Company conducted a review of the geological prospectivity, current land use/ownership and general practicality of undertaking future development within the original option areas and concluded that it wished to retain 13 new blocks of 250km² or less.

Further to discussions with Crown Estate Scotland, it was agreed that rather than retain the 5 original, albeit reduced, option areas and apply for 8 new option areas, the SGZ Grampian would apply for 13 new option areas and surrender the original agreements.  This would not only have the benefit to the Company of a new 6 year term for all 13 areas, but also that the required biannual reporting required for all areas was synchronised, enabling the Company to conduct and optimise its exploration programs on a regional basis.

The Company is now pleased to announce that the 13 new Option agreements have been concluded retrospectively to 5^th November 2018. Details of the new agreement areas are tabulated below and are illustrated on the attached map which can be viewed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/9227Q_1-2019-10-23.pdf

No.	Name	Area
1	Knapdale South	250 km2
2	Knapdale North	250 km2
3	Inverliever West	250 km2
4	Inverliever East	233 km2
5	Glen Orchy West	103 km2
6	Glen Orchy Central	242 km2
7	Glen Orchy East	241 km2
8	Glen Lyon West	246 km2
9	Glen Lyon North	244 km2
10	Glen Lyon South	243 km2
11	Glen Lyon East	247 km2
12	Ochills West	189 km2
13	Ochills East	150 km2

For further information please contact:

For further information -

Scotgold Resources Limited Richard Gray	Tel: [phone]
SP Angel Corporate Finance LLP Nomad and Joint Broker Ewan Leggat / Charlie Bouverat	Tel [phone]
Capital Markets Consultants Financial PR Simon Rothschild	Tel: [phone]

 

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