The AIM-listed firm, which operates the Cononish mine, faced a potential crisis when an initial investor retracted their interest on 2 October.

In the wake of the most recent developments, Scotgold has acknowledged the ongoing risk of administration, emphasising that such an outcome remains possible should the current negotiations fail.

However, there’s renewed hope as the company expressed confidence that the new deal, if successful, is anticipated to provide the necessary funding to sustain its operations and avoid insolvency, Daily Business Group reports.

A statement released by the firm said: “Further to this, the company is now in advanced discussions with a new strategic investor which, should final agreement be reached, is expected to provide sufficient funding for the company to continue as a going concern.

“Whilst financing discussions are at an advanced stage, in the event the company cannot secure financing with the new strategic investor, this could result in the appointment of administrators.”