Nothing game changing yet but steady flow of news which is encouraging.
olar Gold Limited Statement re Announcement made by BSE listed Deccan Gold Mines Limited Kolar Gold Limited (AIM: KGLD, referred to as 'KGL', 'Kolar Gold' or the 'Company') notes the recent announcement by Deccan Gold Mines Limited ('Deccan'), an Indian gold exploration company listed on the Bombay Stock Exchange ('BSE'). The Deccan Board has announced its in-principle approval for its proposed amalgamation with Australia Indian Resources Limited ('AIR') under a Scheme of Arrangement pursuant to the provisions of the Companies Act, 1956, India. AIR is an Australian company with a 38.8% equity interest in Geomysore Services India Private Limited ("GMSI"). Upon completion of the proposed amalgamation, Deccan will own and control AIR's interests in GMSI. AIR will have no other assets other than its holding in GMSI. In conjunction with the above, the Deccan Board has also given its in-principle approval for the proposed acquisition of the remaining 61.2% equity interests in GMSI not held by AIR, including the 30% equity interest in GMSI held by Kolar Gold. Deccan has proposed to issue new shares in exchange for the GMSI shares held by Kolar Gold and other shareholders. Accordingly, if the Board decides to exchange Kolar's shares in GMSI with Deccan then Kolar Gold will become a substantial shareholder in Deccan. Significant due diligence and valuation work is currently being undertaken by experts appointed by Deccan on the underlying value of the assets of Deccan and GMSI, including NPV valuations on the latter stage gold mine projects of each company. A valuer and merchant bank have also been appointed by Deccan to determine the ************** ratio. Deccan has 41 gold licence applications underway while GMSI has 71 gold licence applications in India. Accordingly a merger of GMSI and Deccan would result in a total licence application area of 13,714 square kilometres with a combined JORC Resource of 1.670 million ounces of gold. Kolar Gold believes that Deccan expects to submit documentation in relation to its proposed Scheme of Arrangement for its proposed amalgamation with AIR to the Bombay courts in the coming months. Any subsequent ************** offer in relation to the remaining 61.2% interests in GMSI (including Kolar Gold's interests) is expected to be made on the same terms as the Scheme of Arrangement. The proposals will be subject to the approval of Deccan Shareholders and necessary regulatory approvals including the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Indian Ministry of Mines. The amalgamation and acquisition process contemplated by Deccan is expected to take six to nine months and Kolar Gold advises its shareholders to take no action at this time. In due course and on the basis that the Board believes that any proposed ************** offer made by Deccan would be in the best interests of Kolar Gold, shareholders will be sent a cir
4 Dec '13
Kolar's largest shareholders include Sun Group, an Indian mining investor with assets in Kazakhstan and Russia, and Baker Steel, a specialist investment manager. http://www.sify.com/finance/kolar-gold-expects-details-of-historic-indian-mine-sale-this-year-news-editors-picks-nmcwydjbhcd.html
4 Dec '13
Kolar Gold expects details of historic Indian mine sale this year London-listed Kolar Gold expects the government to finalise details for the tender to run the historic Kolar mine before the end of 2013, it said on Monday, paving the way for what it hopes is the revival of Indian gold mining. Kolar, listed on London's AIM growth market, works in India with local junior exploration partner Geomysore Services India (GMSI), which was awarded the mining lease for the Jonnagiri gold project in central India last month. But the company's highest-profile target - key to its plans to "dominate" Indian gold mining - has been the Kolar mine it is named after. It hopes to turn a deep, now-flooded, mining operation into a modern project that will include an open pit and a shallow underground mine, and also tap historic waste which alone could include 750,000 ounces of gold. The Kolar district, about 100 km (60 miles) from Bangalore, has been a gold mining centre for centuries. But the Kolar mine has been at a standstill for the past decade. Colonial-era operations taken over by the state after independence closed in 2001, leaving thousands unemployed, following years of underinvestment and rising costs. A string of potential investors are now eyeing the global tender for Bharat Gold Mines (BGML), the state-run firm now in charge of the mine - part of the government's drive to increase investment in mining in order to reduce imports and help shrink the country's current account deficit. India competes with China for the title of world's largest gold consumer and is home to the world's largest market for jewellery: Indians buy as much as 2.3 tons of gold - or the weight of a small elephant - every day, on average. Production, though, is negligible, despite significant reserves. A Supreme Court decision this summer approved plans for global tenders to revive the Kolar mine, and investors including Kolar Gold are preparing to bid. Other expected suitors include Indian family-controlled heavyweights which have until now concentrated on mining base or ferrous metals, including Vedanta . Kolar Managing Director Nick Spencer described the Supreme Court decision in July as a "major milestone". "We are just finalising our consortium, we are preparing to raise the funds - it will be a considerable acquisition," Spencer told Reuters on the sidelines of a London conference. The company, which is working on the bid with former miners and 17 local unions, could use a combination of equity, debt and even a potential offtake agreement - selling production upfront to large jewellers - to fund the acquisition and development. It expects the tender process to last three months, after which the workers and Kolar should get a right of first refusal. Elections next year, however, could delay the process. Spencer estimated development of the mine and construction would take between two and two-and-a-half years
28 Nov '13
27 November 2013 Kolar Gold Ltd Issue of Options Kolar Gold Limited (AIM: KGLD, referred to as 'KGL', 'Kolar Gold' or the 'Company') announces that as part of the existing share option plan contained in the AIM Admission Document, the Company has today granted options over Ordinary Shares in the Company ("Ordinary Shares") to the following directors at the current share price of 6.38 pence per share. Options granted 27 November 2013 Total options held after grant Harvinder Hungin 150,000 750,000 Steve Oke 125,000 600,000 Stephen Coe 125,000 600,000
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