Deccan Gold Mines Ltd board approves rights issue to raise Rs. 15 crore

The Board of Directors of Deccan Gold Mines Ltd had approved issue of equity shares on rights basis at its meeting held on November 11, 2021 and delegated powers to the management to take decisions in this regard.

Accordingly, the management has finalized the following:

1. Company proposes to raise Rs. 15 crores (approx.) through Rights Issue;
2. The ratio for the rights entitlement and price will be finalized post receipt of necessary regulatory approvals in this regard;
3. The proceeds of the Issue are proposed to be utilized for financing the following objects:
• investment in the subsidiary of the Company, Deccan Gold (Tanzania) Private Limited, for carrying out an exploration program in the 5 (five) Prospecting Licence (PL) blocks that the subsidiary was granted in Tanzania and related expenses including acquisition of fixed assets and payment of administration expenses.
• Acquisition / Investment in mineral assets in India / overseas
• Setting up of an exploration consultancy wing;
• Working capital requirements including litigation expenses w.r.t. the Ganajur Mining Lease; ' General Corporate Purpose; and
• Expenses for the Issue
4. Company has appointed Sundae Capital Advisors Private Limited as Merchant Banker in connection with the proposed Rights Issue.

Shares of DECCAN GOLD MINES LTD. was last trading in BSE at Rs. 20.05 as compared to the previous close of Rs. 19.80. The total number of shares traded during the day was 44533 in over 200 trades.

The stock hit an intraday high of Rs. 20.30 and intraday low of 19.50. The net turnover during the day was Rs. 891187.00.

Source : Equity Bulls

Keywords

DECCANGOLDMINESLTD INE945F01025 Mining FundRaising RightsIssue