Tyndrum gold mine on brink of administration as director resigns

dailyrecord.co.uk:

Directors of Scotland’s only commercial gold mine near Tyndrum are considering the appointment of administrators.Last month Scotgold announced that it was in advanced financing discussions with a strategic investor.However, a stock exchange update explained that this did not result in an investment.“Therefore, the directors, having assessed the options open to them, are now considering the appointment of administrators over the coming days,” read the statement.Director Nathaniel le Roux has also notified the board of his resignation.He is the major secured creditor of SGZ Cononish, a subsidiary to Scotgold.“After almost 10 years on the board, I have made this decision with considerable regret,” read a statement.“As Scotgold’s operating subsidiary heads towards administration, there is an unavoidable conflict between the interests of the company and my personal interest as the major secured creditor, and I believe it is in the interests of shareholders generally that I now stand down.“After almost 10 years on the board, I have made this decision with considerable regret,” read a statement.“I remain the company’s largest shareholder, and the board has my full support at this very difficult time.”At the end of September, Scotgold placed the majority of its employees on short-term unpaid leave to help preserve funds, while retaining some key staff members across mining, plant and maintenance.Scotland’s only commercial gold mine explained at the time that this maintenance team would maintain assets and ensure compliance with regulatory and environmental reporting obligations.The measures were deemed necessary due to recent intensification of the company’s financial problems, which saw it suspend trading on the stock market