Deccan Gold Mines Limited (DGML) is announcing the opening of its rights issue starting on October 14

DGML will issue over 2.96 crore equity shares of face value ₹1 each for cash at a price of ₹17 (including share premium of ₹16) an equity share to raise an aggregate amount of ₹50.33 crore.

The issue offers shares to eligible equity shareholders on rights basis in the ratio of one equity share for every two equity shares held on the record date which was September 5. The issue will close on October 28, 2015.

The lead manager to the issue is Spa Capital Advisors and the registrar to the issue is Link in Time India Pvt Ltd.

The funds raised by the company will be predominantly utilised for the development of its Ganajur Gold Project in Karnataka for which the Ministry of Mines had issued an approval letter in July 2015 and the mining license application is awaiting nod from the Karnataka Government which should be forthcoming soon.

Source: The Hindu Business Line