Kolar Gold issues 8.5m shares to joint venture partner

(ShareCast News) - India and Finland gold explorer and trading exchange provider Kolar Gold announced on Thursday that it has issued 8.5 million new ordinary shares to Mineral Exploration Network Finland in return for 150 shares in Kalevala Gold Oy - the recently incorporated Finnish company established to develop the various licences subject to the joint venture with MENF.The AIM-traded firm said the new shares have been issued at an implied price of 1.6p per share by reference to the consideration of €0.15m.It said the new shares are locked in for a period of six months from today's date.Application was being made for the new shares to be admitted to trading on AIM with admission expected to occur on 10 January."We are pleased to report that Kolar Gold now owns 15.4% of the newly established Finland operating company, Kalevala, with high grade gold targets within licences covering 24 square kilometres in central East Finland," said Kolar CEO Cameron Parry."Should 100 kilograms or more of gold be produced from our planned 10,000 tonne gold ore bulk sampling campaign in Q3 this year, Kalevala will generate material revenues, based on today's gold price with the potential for such sums to be reinvested into further exploration or the possible return of capital to Kalevala shareholders through dividends."We look forward to progressing our work in Finland over the coming months and updating the market accordingly as we head towards our planned first gold production."