Deccan Exploration Services Private Limited (DESPL), a wholly-owned subsidiary of Deccan Gold Mines Ltd, has entered into a technical and commercial consultancy and advisory services agreement with Hira Infratek Private Limited, Chhattisgarh, for its Ganajur Gold Prospect, in Haveri district.

A company release said “Under the terms of the agreement, Hira will provide the whole gamut of technical and commercial consultancy and advisory services to assist DESPL with the development of Ganajur Gold Prospect.” .

Procedures

The services include framing procedures and regulatory requirements to enable grant and execution of the mining lease and dealing with environmental and other issues. The tenure of this agreement is for three years, extendable by mutual consent.

The company further said: “In consideration of the technical and commercial consultancy and advisory services rendered, Hira is entitled to get 9 per cent stake in the project.” “This 9 per cent stake will only be recognised upon the execution of the mining lease deed for the Ganajur Gold Prospect between DESPL and Karnataka Government,” it added.

Post this initial 9 per cent stake, Hira shall be required to contribute proportionate amount of capital thereafter for the development of the project in order to maintain its stake. All future project development costs, post mining lease execution will be shared between DESPL and Hira in the ratio of 91:9.

anil.u@thehindu.co.in

(This article was published on November 15, 2012)
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