Times News Network, Times of India, 10 May 2003 :
By Arun Iyer
Rama Mines (Mauritius) part fo the Perth-based Australian Indian Resources (AIR) has taken control of Deccan Gold Mines (DGM), company listed on the Bombay Stock Exchange (BSE).
DGM now becomes the first gold exporation company to be listed on the Indian bourses. Rama Mines 9Mauritius) owns 81.2 % in this company.
GeoMysore, which has the permits for mineral exploration in Karnataka and is also a part of the AIR is now in the process of transferring four prospecting regions and permits (north Hutti, south Hutti, Ramagiri and Mangalore) to DGM.
Mumbai-based kKeynote Securities has also been mandated to file the prospectus for DGM’s rights issue, which could commence once DGM’s share capital is plsit in the ratio of 10:1 (10 shares for every 1 share). Currently, DGM’s paid-up capital is Rs 24.5 lakh, which is expected to rise to Rs 5.14 crore post-rights issue. DGM commenced trading on BSE yesterday and saw 100 shares change hands and closed at 49.6, according to Mr. Sandeep Lakhwara, geoMysore’s managing director.
“The transfer of north Hutti prospects would be completed within the next 10 days while the others would be completed over the next two to three months,” he added.
Mr Lakhwara said that prospecting would be spread over 502 sq. km. In north Hutti, 315 sq.km in south Huttti. The Ramagiri prospecting is spread over 400 sq.km. in Andhra Pradesh’s Anantpur district, while it is 125 sq.km in Mangalore. Commenting on the drilling operations in the north Hutti region, Mr Lakhwara said that three holes had been drilled and these had indicated existence of gold and base metals (base metal like copper indicates the presence of gold).
Interestingly enough, a survey done by two geologists Mr L C Curtis and Mr P P Radhakrishna for the state-owned Hutti Gold Mines as recently as 1999 has indicated that Hutti region has total reserves of 151.6 tonnes of gold, valued at roughtly $ 1.6 billion. GeoMysore officials are confident of striking gold as the yellow metal is found at seven parallel loads of HGM, which are a metre wide.