Scotgold Resources Ltd. said Oct. 18 that it decided to liquidate its French subsidiary SGZ France SAS after its planned sale to Ikigai Ltd. failed.

SGZ France does not hold any assets except the Vendrennes exploration license in France.

In June, the company said that closing the sale was conditional upon the parties receiving acknowledgement from the Minerals Resources Office of the Ministry for Economy and Finance of France, and it was working toward securing the approval.

Scotgold does not intend to pursue the development of the project in its own right.

Apart from costs related to the liquidation process and administration of around £12,000, the move will not result in any loss to the company in the current period.

Scotgold's shares in London fell nearly 6% following the news.

Meanwhile, the company said that it has worked with Trossachs National Park Planning Authority, or NPA, to secure all the required licenses for its Cononish gold-silver mine in Scotland, and expects a formal decision soon.

Additionally, Scotgold received an offer from the Scottish Enterprise for a grant of up to £430,000 to support the phase-one development at Cononish, conditional upon the creation of 36 full-time jobs and CapEx payments of £8.6 million.