The Scottish-based non-executive chairman of precious metals prospector Scotgold Resources has resigned from the board after just two months.
The shock departure of Sandy Littlejohn, the Glasgow-based managing director of dental laboratories firm DTS Group, came after he informed the company board that he would be unable to take up his portion of unsold shares which he had signed up to underwrite.
The tranche of more than 91 million shares are worth $550,000 and were left over after a $3.4m rights issue last month was undersubscribed.
A larger tranche of 281.8m shares have been taken up by fellow underwriter and investor Nat le Roux.
Scotgold, which is carrying out a technical review of its plan to mine for gold and silver at Cononish in the Loch Lomond and Trossachs National Park, said it had accepted Mr Littlejohn’s resignation “with regret” and would now use its “best endeavours” over the next three months to place the unallotted shares.
The company saidnon-executive directorPhillip Jackson had agreed to step up and act as chairman on an interim basis.
It also added that, having secured 84% of its $3.4m target from the share placing, its medium-term development plans remained unchanged including the redemption of $2.23m of outstanding RMB debt.