Deccan Gold Mines’ (DGML) wholly-owned subsidiary Deccan Exploration Services (DESPL) has entered into a Technical and Commercial Consultancy and Advisory Services Agreement with Chhattisgarh-based Hira Infratek to develop Ganajur Gold project in Karnataka.
As per agreement, Hira would provide the whole gamut of technical and commercial consultancy and advisory services to assist DESPL with the development of the Ganjaur Gold Project, including advisory services on the procedures and regulatory requirements to enable grant and execution of the Mining Lease and dealing with the environmental and other issues connected thereon. The tenure of this agreement is for a period of three year, extendable with mutual consent.
In consideration services, Hira shall be entitled to a nine percent stake in the project. This 9% stake in the project will only be recognized upon the execution of the Mining lease deed for the Ganajur Gold Project between DESPL and the State Government of Karnataka.
Post acquisition of this stake, Hira shall be required to chip in proportionate amount of capital thereafter for the development of the project to maintain its stake. All future project development costs, post mining lease execution, will be shared between DESPL and Hira in the ratio of 91:9. In case Hira prefers not to contribute further funds to maintain its stake at nine percent in the project, its stake will get diluted accordingly.
| Company Name | CMP |
|---|---|
| Coal India | 456.35 |
| NMDC | 88.80 |
| GMDC | 684.70 |
| Sandur Manganese | 241.35 |
| MOIL | 315.65 |
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