Loading...
By
Deccan Gold Mines to buy 49% stake in Geomysore
Photo Credit: 123RF.com

Deccan Gold Mines, the first listed gold exploration company in India, on Monday said it will acquire a 49% stake in Geomysore Services (India) Pvt Ltd in which private equity firm Samara Capital-backed Thriveni Earth Movers Pvt Ltd is the largest shareholder. 

As part of the transaction, Thriveni Earth Movers will retain rights to a minimum 51% stake in Geomysore Services, said Deccan Gold Mines in a stock market disclosure. The retention of the 51% stake will be based on securing project finance for the development of the gold project in Jonnagiri, Andhra Pradesh, it added. 

The acquisition will enable Deccan Gold Mines in a significant equity participation in a gold project with potential to get into revenue stream within the next two years, it said. It will also help the company to add gold projects into its portfolio and boost its fund-raising prospects. 

Deccan Gold Mines said that it plans to raise Rs 50 crore. Of this, Rs 30 crore will be invested in Geomysore Services, Rs 7.5 crore will be used for development of projects in Tanzania and Rs 2.5 crore will be deployed for exploration purposes. The remaining Rs 10 crore will go towards working capital, it added. 

The deal is subject to final valuations and swap ratios, it said. 

Established in 1991, Thriveni Earthmovers had raised Rs 150 crore from Samara Capital in 2010.

In 2017, Thriveni Earthmovers had entered into a strategic business alliance with Japan's Sojitz Corp, according to its website.

Leave Your Comment(s)