MOVES to retain an auction mart facility in Oban received a double

boost yesterday when the Scottish Co-Operative Wholesale Society made a

''substantial donation'' to the fund-raising campaign.

Formal agreement for the purchase, at a ''nominal sum,'' of a

seven-acre site on the outskirts of the town for a new market was also

agreed with a local landowner.

Oban market steering group chairman, Mr Bill Robertson, said the plans

now hinged on an EC decision, expected within the next two weeks, for

approval of a #250,000 grant towards the #1m project at Glencruitten

Estate, owned by Mr Max McKay James. Highlands and Islands Enterprise

has already committed #500,000.

The steering group's initiative to raise a further #250,000 has

attracted subscriptions from about 240 sources from Caithness to the

South of England, and is now only about #60,000 short of target.

A planning application for the new mart has been submitted to Argyll

and Bute District Council. It is hoped work will begin in the spring,

and be completed in time for next year's autumn sales.