Deccan Gold gets SEBI nod for rights issue

Businessline, Bangalore and Free Press Journal, Mumbai, 18 December 2003 :

DECCAN Gold Mines Ltd, the first private sector gold exploration company listed on the Bombay Stock Exchange, has received the Securities and Exchange Board of India’s nod for a rights issue of 49-million equity shares.

The company has set December 30 as the record date for the rights issue, which will open in mid-January. It is also undertaking a split of Rs 10 equity shares into 10 equity shares of Rs 1 each. The record date for the split has also been fixed as December 30.

Deccan Gold is promoted by the shareholders of Australian Indian Resources Pty Ltd, which has had a presence in India since 1994, and is amongst the first MNCs to come to India after the mining sector was opened to foreign companies by the Indian Government.

The company is in the process of formally acquiring gold prospects from two of its associated companies. The prospects are located in areas known to contain gold deposits in the north and south of Huti Hold Mines Ltd, the Ramagiri Gold Fields and other parts of Karnataka.

The associated companies have already undertaken considerable exploration activities in these areas, including sediment sampling, rock chip sampling, geophysical surveys, trenching and drilling.

Deccan Gold will be utilising the proceeds of the rights issue for more detailed exploration to adequately define the gold mineralisation in these prospects.