UK SME finance provider Simply has provided a £323,000 funding facility to Scotgold Resources, a gold exploration and development company that owns the Cononish mine in Scotland.
The funding facility enables Scotgold to buy plant equipment to extract increasing amounts of gold and extend its reach.
Cononish, based near Tyndrum in the Scottish Highlands, is the first commercial gold mine in Scotland. It produced gold for the first time in August 2016 and now aims to extract more than half a million tonnes of ore over the next 10 years.
The assets purchased included an excavator, a loading shovel and a dumper.
Ross Pickburn, regional sales manager at Simply, said: “This was an incredibly interesting deal to work on, not least because it was the first gold mine I’d ever helped fund. It’s great working with a company that produces Scottish gold and a team that is creating jobs in the area. Thanks to Kevin at Hodge Plant, we got to know about the needs of the company and were able to structure a deal that worked for all parties.”
Kevin McGinley, Hodge Plant’s sales director said: “As a machinery dealer, we know that our customers need rapid access to finance, but also want to be communicated with effectively on a personal level. We knew that Simply would understand the business and its plans for growth, so it made sense for Ross to meet Richard and come up with a solution.”
Richard Gray, managing director and chief executive officer at Scotgold, said: “It was a pleasure dealing with Ross. He really knew his stuff and bent over backwards to help us get the finance we needed. We know we’re in a slightly niche sector which other funders would not feel comfortable in, but there was no doubt that Simply would get this done for us. The whole experience – from start to finish – was smooth and positive.”
Last month Simply completed a £130,000 hire purchase deal to enable a taxi firm in Scotland to buy two more electric Tesla ‘Model X’ motors to add to its green fleet of executive private hire vehicles.