Highland and Islands Enterprise (HIE) has approved funding to support the development of a new community-led distillery project in an historic site in Moray.

The Cabrach, described as the most rural area of Moray, is believed to be the "birthplace of malt whisky". Historically famed for a long and colourful whisky distilling history and the haunt of illicit distillers and smugglers, at the turn of the 20th century the area was home to a population of over 1000, a figure that has now fallen to less than 100.

The Cabrach Trust, formed in 2013, has developed a "vision is to regenerate the area as a thriving, sustainable community".

The charity has produced a strategic masterplan to deliver significant job creation, attract new visitors, and celebrate the cultural heritage, landscape and history of the Cabrach.

HIE has approved the award of £500,000 towards the £5 million distillery development. The HIE funding will be used to help cover the costs of construction works on the extensive refurbishment of farm steading buildings at Inverharroch Farm, which was acquired by the Trust in 2013.

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The refurbished 19th century steading will become home of The Cabrach Distillery and will produce a unique heritage-led Single Malt Scotch Whisky. Within eight years it is forecast to have an annual turnover of almost £3.4m and provide employment for 12.5 full time equivalent posts, as well as 50 volunteering opportunities.

Operating as a social enterprise, all surplus profits from the venture will be reinvested for the benefit of the community.

Fiona Robb, head of strengthening communities with HIE's team in Moray, said: "This project represents a significant third sector project in Moray's most rural area, where population has declined significantly. Tapping into local heritage it seeks to use this to attract and retain new talent.

"In addition to production, turnover and sales, the venture will contribute to community regeneration with significant social benefits and low carbon credentials. It will support new employment, alongside a sustained commitment to providing training and education. It will also enhance the region's appeal to visitors and its reputation for quality food and drink production. I'm delighted we've been able to provide support and look forward to continuing to work with the Trust as they develop the venture."

Jonathan Christie, chief executive officer of The Cabrach Trust, added: "This incredible investment from Highlands and Islands Enterprise is central to realising The Cabrach Distillery; a project which will serve as the lungs of our long term, transformational regeneration strategy for this important place. Beyond vital funding, the Trust is excited to work alongside HIE as we deliver what we collectively believe has the potential to become an exemplar of community led, rural regeneration in action."

The project has also secured £361,767 from the Scottish Government Just Transition Fund.

Beyond the distillery, an innovative community learning, rural skills, and wellbeing programme forms an important part of the Trust's work. This is further complemented by the completion of a brand-new all-abilities Discovery Trail, creation of a new Cabrach Tweed, and resurrection of the long lost Cabrach Picnic and Games.