The Hindu Business Line : Deccan Gold Mines announces Rs 5-cr rights issue

Mr Charles Devenish, Chairman, Deccan Gold Mines Ltd (left), with Mr Sandeep Lakhwara, Executive Director, at a press conference in New Delhi on Monday. - - Kamal Narang

New Delhi , Nov. 3

DECCAN Gold Mines Ltd, the only listed gold exploration company in the country, on Monday announced a rights issue to aggregate nearly Rs 5 crore to expand exploration activity.

"We would offer 4.9 crore equity shares of Re 1 each for cash at par to the existing shareholders in a ratio of 20 shares for every share held. The shareholders have the option of renouncing the rights. The funds would be used to undertake exploration in the Dharwar-Shimoga block in Karnataka," the company Executive Director, Mr Sandeep Lakhwara, told newspersons here.

Post rights, the subscribed capital of the company would expand to Rs 5.145 crore. The company, at present, has issued and subscribed share capital to the tune of Rs 2.45 crore comprising shares of Rs 10 each, which would be split into 10 shares of face value of Re 1 each.

He said that the block, comprising as many as 11 gold bearing prospects, had the potential of becoming an open pittable gold mine.

Deccan Gold has already started exploration to ascertain the exact length, width and depth of zone and gold grade.

Deccan Gold is majority owned by Australian Indian Resources, a company floated in Australia, which has invested Rs 10 crore till now in the country.

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