Deccan Gold Mines Ltd's JV commences construction of processing plant at Jonnagiri

Geomysore Services India Private Limited (GMSIT) has announced that a Bhumi Puja was performed on September 2, 2023 at Jonnagiri, Andhra Pradesh for construction of 1500 TPD (tonnes per day) processing plant for its Jonnagiri Gold Project. This marks the beginning of civil and structural work for the Project.

The Construction of processing plant is expected to be completed by end-2024. Crushing, milling and elution machinery has already been ordered. Work for water pipeline would be commenced simultaneously.

On September 1, 2023 Deccan Gold Mines Ltd (DGML) made its first-tranche investment of INR 15 crore into GMSI and would be investing a further amount of INR 13.50 crore into GMSI by September 10, 2023. Thus, DGML would be making a total investment of INR 28.50 crore into GMSI.

The key shareholders of GMSI viz., Thriveni Earth Movers Private Limited ("Thriveni') and DGML agreed to infuse INR 60 crore of Equity Capital into GMSI. Proceeds of this investment was to be used for land acquisition, ordering of equipment and commencement of civil work for the processing plant and water pipeline work.

Thriveni had made an investment of INR 40 crore into GMSI recently.

GMSI has announced that it will complete the share allotment process to DGML & Thriveni by mid-September, 2023. Post allotment, DGML's shareholding in GMSI will be 40.07%.

By way of background, the Company had acquired a significant stake in GMSI under a share swap arrangement which was completed during March, 2023.

Shares of DECCAN GOLD MINES LTD. was last trading in BSE at Rs. 83.71 as compared to the previous close of Rs. 83.08. The total number of shares traded during the day was 129375 in over 653 trades.

The stock hit an intraday high of Rs. 84.95 and intraday low of 80.55. The net turnover during the day was Rs. 10658707.00.

Source : Equity Bulls

Keywords

DECCANGOLDMINES INE945F01025 Mining Gold GeomysoreServicesIndia BhumiPuja