Comments
Deccan Gold Mines Ltd has announced that Jonnagiri Gold Mining Project of Geomysore Services (India) Private Limited at Andhra Pradesh, that key shareholders of Geomysore - Thriveni Earth Movers Pvt Ltd and Deccan Gold Mines Limited - have agreed to infuse ₹60 crore of Equity Capital into Geomysore by the end of August.
Stock under bull grip
Shares of BSE-listed DGML have been witnessing a strong rally in 2023 on the back of its expansion plans, including a global footprint. The stock doubled year-to-date at ₹79.34.
Deccan Gold Mines Limited (DGML) recently completed the acquisition of over 44 per cent stake in Geomysore Services India Pvt Ltd from Australian Indian Resources Limited, Lionsgold India Holdings Limited, and SUN Group.
Thriveni, which holds majority stake in Geomysore Services, has already invested ₹15 crore with the balance ₹25 crore is expected by August-end. DGML is also committed to infuse a further ₹20 crore in August.
Utility of funds
Proceeds of this investment will be used for land acquisition, ordering the equipment, and commencement of civil work for the processing plant and the water pipeline. 120 acres of key land have been already acquired in Jonnagiri. Efforts are on to acquire another 130 acres of land by the end of this quarter.
A 20 tpd (tonnes per day) gravity circuit based Pilot plant is currently operating and the process flow is being fine-tuned. The capacity is going to be enhanced to 40 tpd which can potentially produce 1 kg of gold per month. Open pit mining in the East Block of the Jonnagiri Mining Lease area is under progress. About 800 tpd of gold ore is being currently extracted, the company said in a statement to the stock exchanges.
Krygyzstan, Finland acquisitions
Earlier this month, DGML board had approved the proposal to acquire share capital aggregating to 10.50 crore KGS (Kyrgyzstani Som) in Avelum Partners LLC, Kyrgyzstan, representing 60 per cent of the present capital of Avelum from Hira Infra-Tek Limited, India, and Med Edu Care Marketing Management, Dubai. The acquisition would be through non-cash consideration as share swap by issue and allotment of about 1.85 crore shares via preferential issue.
Similarly, the board has also approved a proposal to acquire share capital aggregating 810 shares in Kalevala Gold Oy, Finland, representing 31.52 per cent of the present capital of Kalevala from Lionsgold India Holdings Ltd, Mauritius. The acquisition would be through non-cash consideration as share swap by issue and allotment of 11,51,181 shares via preferential issue. The company has an option to add another 10 per cent in Avelum and 18.48 per cent in Kalevala at an appropriate time.
For every 533 shares held in Avelum, the prospective shareholders would be issued 94 equity shares of the face value of Deccan Gold. Similarly, for every 33 shares held in Kalevala, the prospective shareholders would be issued 46,900 of Deccan Gold.
The conversion price for share swap would be ₹53.47 a share, Deccan Gold had said in an earlier notification to the stock exchanges.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.