Kolar Gold Limited - Company Update

 

 

KOLAR GOLD LIMITED

 

 

Update for shareholders and investors

 

 

Since its listing on AIM in June 2011, Kolar Gold's objective has been to become one of the leading participants in the developing Indian gold exploration and mining sector.  Following the elections in India earlier this year, the Board of Kolar Gold believes that the environment for the Company's activities has improved and remains confident of progress in the future.

 

The Board reviewed its strategy in 2013, in light of the slow pace of progress with its gold licence and exploration activities, and revised its arrangements with its partner, Geomysore Services India Private Limited ("GMSI"), in order to focus on developing prioritised, later stage gold exploration and mining licences.  At the same time measures were taken to reduce costs and preserve cash.

 

As part of this revised strategy, in August 2013 Kolar Gold entered into new arrangements with GMSI, which included further investment at that time and which included Nick Spencer joining the board of GMSI.  In exchange for dissolving the 2011 agreements with GMSI, the cancellation of a loan of £300,000 to GMSI from Kolar Gold and the investment of £700,000, Kolar Gold gained a 30per cent shareholding in GMSI.  This investment gave Kolar Gold direct exposure to GMSI's extensive portfolio of Indian gold licence rights and applications, including a new project at Jonnagiri that did not fall under Kolar Gold's initial 2011 agreements with GMSI.  In October 2013, GMSI was granted a mining licence at Jonnagiri, the first such grant in India for gold since 2003. Jonnagiri has 720k ounces of JORC Resource and an exploration target of 2-5Moz, which was validated by a competent person's report conducted by Mining Associates.  GMSI is now working on developing this resource. Kolar Gold has recently invested $100,000 into GMSI for ongoing expenses.  GMSI continues to discuss its options with the Kolar Gold Board and third parties with regard to securing future financing however Kolar Gold has no obligation to make any further investment.  Kolar Gold's holding in GMSI is currently 24.65 per cent.

 

In December 2013 Deccan Gold Mines ("DGM"), whose shares are listed on the Bombay Stock Exchange and which currently has a market capitalisation of $22m, announced that its board had, subject to relevant regulatory approvals and consents, given its in-principle approval for an amalgamation of DGM and Australia India Resources ("AIR") - the largest shareholder in GMSI.  This merger is proposed under a court approved Scheme of Arrangement in Mumbai.  DGM has a number of gold mining assets, key amongst them being the Ganajur Prospect Licence, which has 308k ounces of JORC Resource confirmed by SRK mining consultants and a final stage mining lease application pending.  Upon completion of the proposed amalgamation DGM will own and control AIR's interests in GMSI.  Additionally the board of DGM has given in-principle approval for the acquisition of the remaining 62.45per cent equity interests in GMSI not held by AIR, including Kolar Gold's shareholding in GMSI.

 

Since the announcement of the proposed merger, GMSI and DGM have been preparing their respective companies' valuations and proposed share swap ratios together with the scheme for approval by the Indian court.  It is Kolar Gold's understanding that the scheme is almost fully prepared.  It is also the understanding of the Board of Kolar Gold that the merger would require new funding to be raised to finance the activities of the enlarged group, which it is anticipated will occur at the completion of the amalgamation, from the Indian and international capital markets. 

 

The Board of Kolar Gold believes that the proposed merger between GMSI and DGM and the associated fund raising will create a unique, significant and potentially well capitalised listed gold mining and exploration player in India.  If the transaction is completed Kolar Gold will own a proportional stake in the merged, listed entity.  It is likely that Kolar Gold, together with other major GMSI shareholders, will have the opportunity to invest in the merged DGM/GMSI entity.

 

Shareholders should note, however, that the Board of Kolar Gold has not received any firm proposal for it to consider in relation to the proposed merger.  If and when such a proposal is received the Board will consider it and advise shareholders of the terms and what action, if any, it is proposed the Company should take.  Importantly, Kolar Gold has given no commitment or undertaking that it will participate in the DGM/GMSI funding from its existing cash resources.

 

In parallel with this, Kolar Gold continues to work on the proposed acquisition of Bharat Gold Mines Limited ("BGML"), which represents a significant and separate opportunity and remains the second limb of Kolar Gold's strategy.  The tender for the privatisation was expected to be issued before the recent election, following the 2013 decision of the Supreme Court of India instructing the Government to proceed with the asset sale and mine revival.  Kolar Gold continues to work in partnership with the BGML ex-employees and their representative cooperative societies.  Together with the ex-employee unions and societies, Kolar Gold has a right of first refusal ("ROFR") to acquire BGML and the Company is preparing for the tender sale process and ROFR counter offer bid. Kolar Gold is considering its available financing options to enable participation in the sale process, which is anticipated to commence later this year.  Kolar Gold shareholders may also have the opportunity to participate in any equity funding for this project.

 

Based on Kolar Gold's two key assets - (1) a significant shareholding in GMSI (24.65%) together with the proposed merger with DGM; and (2) its preferred position in the anticipated tender of BGML - Kolar Gold has the ability to play a pivotal role in the emergence and development of the Indian gold mining sector. Getting to this point has been a long, complex and resource consuming journey but the opportunity is clear. Kolar Gold intends to use its cash resources prudently and in the best interests of all its shareholders in order to take as full advantage of these opportunities as is possible.  The Board of Kolar Gold has a broad base of relevant mining, funding and M&A experience and in addition to proceeding with its stated strategy, reviews the challenges of doing business in India on an ongoing basis, whilst balancing these with the cash resources available to the Company.  The remainder of 2014 is likely to be key in the delivery of Kolar Gold's two clear gold strategies in India and we look forward to providing a further update on these developments over the months ahead.

 

For further information please contact:

 

Kolar Gold Limited


Nick Spencer / Chris Clowes

+61414874491 / +61417197288

N + 1 Singer (Nomad and Joint Broker)

James Maxwell / Jen Boorer

+44 20 7496 3000

Pareto Securities (Joint Broker)

Will Slack

+44 20 7786 4371

Tavistock Communications


Ed Portman / Nuala Gallagher

+44 20 7920 3150

Churchgate Partners

Sumir Bhardwaj

 

+44 7768 696760

 

ENDS

 

 

 

 

2011 2012 2013 2014 2015 2016 2017 News Archive
DATE HEADLINE
2011-12-09 07:00:16 Kolar Gold Limited - Issue of Shares to Director
2011-12-08 17:24:46 Kolar Gold Limited - Result of AGM
2011-12-06 07:00:23 Kolar Gold Limited - South Kolar Gold Project - Drilling Update
2011-11-14 07:00:30 Kolar Gold Limited - Final Results
2011-11-07 08:59:27 Kolar Gold Limited - Kolar confirms three IP anomalies in South Kolar
2011-08-15 07:00:08 Kolar Gold Limited - South Kolar licence area - drilling update
2011-06-27 10:15:00 Kolar Gold Limited - Holding(s) in Company
2011-06-21 10:45:01 Kolar Gold Limited - Holding(s) in Company
2012-12-31 11:44:43 Kolar Gold Limited - Issue of Shares, etc
2012-12-31 10:51:13 Kolar Gold Limited - Result of AGM
2012-12-10 16:50:09 Kolar Gold Limited - Final Results
2012-12-07 15:03:38 Kolar Gold Limited - Composition of Board
2012-11-09 12:05:01 Kolar Gold Limited - Adviser Change of Name
2012-06-13 07:01:00 Kolar Gold Limited - Maiden Resource Statement - Mallappakonda
2012-04-02 07:00:13 Kolar Gold Limited - Positive drill results at Mallappakonda Deposit
2012-03-30 10:10:59 Kolar Gold Limited - Half Yearly Report
2012-02-29 07:00:34 Kolar Gold Limited - Change of Adviser
2013-12-20 10:29:50 Kolar Gold Limited - Result of AGM
2013-12-10 07:00:07 Kolar Gold Limited - Statement re Deccan Gold Announcement
2013-11-28 16:40:55 Kolar Gold Limited - Notice of AGM
2013-11-27 17:14:56 Kolar Gold Limited - Issue of Options
2013-11-20 07:00:03 Kolar Gold Limited - Final Results
2013-10-28 07:00:15 Kolar Gold Limited - Jonnagiri Mining Lease Granted
2013-08-19 07:00:06 Kolar Gold Limited - HoA with GMSI and Board Changes
2013-07-17 07:00:07 Kolar Gold Limited - BGML Mines Tender Update
2013-07-11 07:01:22 Kolar Gold Limited - BGML Mine Update
2013-07-03 07:44:25 Kolar Gold Limited - Holding(s) in Company
2013-06-06 15:09:26 Kolar Gold Limited - Holding(s) in Company
2013-04-03 07:00:05 Kolar Gold Limited - Exercise of Warrants and Issue of Shares
2013-03-25 07:13:28 Kolar Gold Limited - Half Yearly Report
2013-01-28 07:00:06 Kolar Gold Limited - Trading Update
2013-01-04 10:10:02 Kolar Gold Limited - Admission of Ordinary Shares
2014-12-22 16:02:58 Kolar Gold Limited - Result of AGM
2014-11-28 07:00:23 Kolar Gold Limited - Notice of AGM
2014-11-27 07:53:24 Kolar Gold Limited - Final Results
2014-11-27 07:00:11 Kolar Gold Limited - GMSI Investment and Jonnagiri Update
2014-07-24 10:11:06 Kolar Gold Limited - Director/PDMR Shareholding
2014-07-15 07:00:16 Kolar Gold Limited - Company Update
2014-03-31 11:39:42 Kolar Gold Limited - Half Yearly Report
2014-03-13 09:35:44 Kolar Gold Limited - Holding(s) in Company
2014-02-11 09:26:51 Kolar Gold Limited - Holding(s) in Company
2015-12-31 12:02:55 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) Kolar Gold
2015-12-31 10:40:22 Kolar Gold Limited - Result of AGM
2015-12-22 18:34:11 John George Rodway - Form 8.3 - Kolar Gold Limited
2015-12-22 11:54:12 Kolar Gold Limited - FORM 8 PUBLIC OPENING POSITION DISCLOSURE
2015-12-18 10:26:37 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-17 10:46:09 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI)- Kolar Gold
2015-12-15 09:01:54 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-14 11:35:13 Kolar Gold Limited - Notice of AGM
2015-12-10 11:48:13 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2015-12-09 10:24:28 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2015-12-08 07:00:07 Kolar Gold Limited - Final Results, Board Changes & Offer Period
2015-11-16 07:00:04 Kolar Gold Limited - Replacement: Change of Registered Office
2015-11-11 07:00:10 Kolar Gold Limited - Change of Registered Office
2015-09-16 09:55:20 Kolar Gold Limited - Holding(s) in Company
2015-09-15 17:55:38 Kolar Gold Limited - Statement re. Press Comment
2015-03-30 11:34:09 Kolar Gold Limited - Half Yearly Report
2015-02-03 14:44:37 Kolar Gold Limited - Holding(s) in Company
2016-12-28 11:50:30 Result of AGM
2016-12-09 07:00:08 Kolar Gold Limited - Final Results
2016-11-23 07:00:08 Kolar Gold Limited - Appointment of New Director
2016-11-01 07:00:06 Kolar Gold Limited - Gold Trading Platform JV and Strategic Investment
2016-10-21 07:00:07 Kolar Gold Limited - Indian Resource Size Increase
2016-10-13 07:00:08 Kolar Gold Limited - Finland Gold Joint Venture MOU Signed
2016-09-30 17:10:02 Kolar Gold Limited - Directorate Change
2016-09-19 14:52:48 Kolar Gold Limited - Holding(s) in Company
2016-09-15 14:01:17 Kolar Gold Limited - Operational Review and Strategic Update
2016-08-22 07:25:32 Kolar Gold Limited - Holding(s) in Company
2016-08-03 11:26:37 Kolar Gold Limited - Holding(s) in Company
2016-08-02 09:36:38 Kolar Gold Limited - Holding(s) in Company
2016-08-01 11:13:47 Kolar Gold Limited - Holding(s) in Company
2016-07-29 15:10:42 Kolar Gold Limited - Holding(s) in Company
2016-07-29 08:23:30 Kolar Gold Limited - Change of Website Address
2016-07-27 14:04:50 Kolar Gold Limited - Result of General Meeting and Director's Dealing
2016-07-12 09:59:30 Kolar Gold Limited - Change of Adviser
2016-07-12 07:00:07 Kolar Gold Limited - Change of Adviser
2016-07-12 07:00:07 Kolar Gold Limited - Placing, Board Changes and General Meeting
2016-07-07 13:40:29 Kolar Gold Limited - Funding Approved at GMSI EGM
2016-07-06 07:00:07 Kolar Gold Limited - Update on GMSI - Drilling and Study
2016-06-10 16:36:19 Kolar Gold Limited - Director Notification
2016-06-10 16:35:03 Kolar Gold Limited - Director Notification
2016-06-07 17:07:27 Kolar Gold Limited - Stmnt re Share Price Movement
2016-04-19 09:55:52 Kolar Gold Limited - Change of Adviser
2016-04-01 08:56:57 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-31 11:08:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) -Kolar Gold Ltd
2016-03-30 13:45:07 Kolar Gold Limited - Half Yearly Report & Strategic Review Update
2016-03-30 11:50:41 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-29 09:12:49 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-24 10:23:11 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-03-23 17:30:02 Damille Investments II Limited - Form 8.3 Disclosure Kolar Gold
2016-03-23 11:24:47 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-22 10:36:53 Neil Greetham - Form 8.3 - Kolar Gold Limited
2016-03-22 10:31:58 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-21 11:43:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Plc
2016-03-18 12:23:44 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-18 10:22:09 Grant Stevens - Form 8.3 - Kolar Gold Limited
2016-03-17 10:39:12 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-16 11:14:47 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-15 11:49:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-14 18:00:00 Paul Johnson - Form 8.3 - Kolar Gold
2016-03-14 11:24:37 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-11 08:51:10 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-10 11:26:44 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-09 10:51:15 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-08 11:44:06 Kolar Gold Limited - Statement Re: Share Price Movement
2016-03-08 09:30:27 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-07 15:03:48 Andrew Neal - Form 8.3 - KOLAR GOLD
2016-03-07 12:07:06 Grant Stevens - Form 8.3 - Kolar Gold
2016-03-07 11:03:41 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-03-04 11:18:03 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-29 10:35:18 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-29 07:00:09 Grant Stevens - Form 8.3 - Kolar Gold Limited
2016-02-26 09:59:12 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-26 08:08:14 Peter Allaway - Form 8.3 - Kolar Gold
2016-02-12 14:54:35 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold amend
2016-02-12 10:05:13 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-09 11:04:28 Kolar Gold Limited - Form 8.3 - Kolar Gold
2016-02-09 10:40:15 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-08 11:58:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-04 14:08:01 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-03 11:57:00 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-02 11:08:17 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-02-01 11:12:55 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-29 11:51:10 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-28 14:28:00 Paul Johnson - Form 8.3 - Kolar Gold plc - Amendment
2016-01-27 15:22:57 Kolar Gold Limited - Replacement - Form 8.3 - Kolar Gold
2016-01-27 12:45:24 Kolar Gold Limited - Form 8.3 - Kolar Gold
2016-01-27 10:01:23 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-20 16:58:48 Kolar Gold Limited - Form 8.3 - Kolar Gold
2016-01-20 16:36:00 Paul Johnson - Form 8.3 - Kolar Gold plc
2016-01-20 09:37:56 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-19 12:02:02 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-18 11:10:49 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-14 10:18:45 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold
2016-01-13 09:13:34 Nplus1 Singer Capital Markets Ltd - Form 8.5 (EPT/RI) - Kolar Gold Ltd
2016-01-11 14:53:17 David Budd - Form 8.3 - Kolar Gold
2016-01-07 16:32:24 Kolar Gold Limited - Form 8.3 - Kolar Gold
2017-12-14 09:05:21 Lionsgold Limited - Second Price Monitoring Extn
2017-12-14 09:00:18 Lionsgold Limited - Price Monitoring Extension
2017-12-13 16:41:06 Lionsgold Limited - Second Price Monitoring Extn
2017-12-13 16:35:39 Lionsgold Limited - Price Monitoring Extension
2017-12-13 14:00:14 Lionsgold Limited - Price Monitoring Extension
2017-12-11 11:49:04 Lionsgold Limited - Final Results
2017-12-08 12:27:48 Lionsgold Limited - Holding(s) in Company
2017-12-08 11:35:35 Lionsgold Limited - Issue of Equity
2017-12-04 16:40:44 Lionsgold Limited - Second Price Monitoring Extn
2017-12-04 16:35:41 Lionsgold Limited - Price Monitoring Extension
2017-12-01 16:41:00 Lionsgold Limited - Second Price Monitoring Extn
2017-12-01 16:35:33 Lionsgold Limited - Price Monitoring Extension
2017-12-01 16:35:09 Lionsgold Limited - Additional Financing and Statement re. Share Price
2017-11-30 07:00:06 Lionsgold Limited - Financing
2017-11-23 15:43:07 Lionsgold Limited - Board Changes
2017-11-16 12:11:51 Lionsgold Limited - Feasibility Study Results and Next Mine Target
2017-11-08 07:00:04 Lionsgold Limited - Appointment of Global Strategy Consultant
2017-11-07 07:00:04 Lionsgold Limited - E-Money Licence Received
2017-10-24 11:25:22 Lionsgold Limited - Pilot Plant Testing Approval Received
2017-10-18 14:30:01 Lionsgold Limited - Fintech Gold Update - Goldbloc
2017-10-05 11:05:46 Lionsgold Limited - Finland Gold Joint Venture Update
2017-09-06 12:00:01 Lionsgold Limited - Holding(s) in Company
2017-08-30 07:00:04 Lionsgold Limited - Holding(s) in Company
2017-08-15 07:00:04 Lionsgold Limited - Feasibility Study Preliminary Results
2017-07-27 10:06:26 Lionsgold Limited - Increase in Indian Gold Company Shareholding
2017-07-12 10:15:01 Lionsgold Limited - Increase of ownership of Fintech Gold Company
2017-07-04 12:15:57 Lionsgold Limited - Mining & Exploration Projects Update
2017-06-22 12:51:05 Lionsgold Limited - Holding(s) in Company
2017-06-08 07:00:04 Lionsgold Limited - Strategic Placing; Director/PDMR Shareholding
2017-05-31 15:38:50 Lionsgold Limited - Indian Gold Portfolio Valuation and Project Update
2017-05-16 07:00:08 Lionsgold Limited - Gold ownership platform goes live
2017-05-03 11:53:24 Lionsgold Limited - Fintech Gold Increased Position
2017-03-30 07:00:07 Lionsgold Limited - Interim Financial Statements
2017-03-14 07:00:13 Lionsgold Limited - India Gold Resource Upgrade and Broker Appointment
2017-02-28 09:33:52 Lionsgold Limited - Broker Change and Finland Gold Update
2017-02-23 16:20:01 Kolar Gold Limited - Result of General Meeting and Change of Name
2017-02-02 07:00:10 Kolar Gold Limited - Proposed Change of Name
2017-01-18 08:45:02 Kolar Gold Limited - Operational update & issue of Director options
2017-01-17 11:25:04 Kolar Gold Limited - Holding(s) in Company
2017-01-05 07:00:07 Kolar Gold Limited - Finland Gold Update