Kolar Gold Limited Operational update & issue of Director options (4578U)
January 18 2017 - 3:45AM
UK Regulatory
TIDMKGLD
RNS Number : 4578U
Kolar Gold Limited
18 January 2017
Kolar Gold Limited
("Kolar Gold" or the "Company")
Operational Update & Issue of Director Options
Kolar Gold Limited (LON: KGLD), the AIM-quoted India-Finland
gold explorer and trading exchange provider, is pleased to provide
the following operational update.
Operational Update
Since the Operational Review and Strategic Update announced to
market on 15 September 2016, the Company has delivered on its
three-fold strategy, to: progress Indian gold mining and
exploration opportunities, secure a complementary financial
technology for the India market, and secure a gold project in a
second jurisdiction. Reflective of this, the Directors are
undertaking a review of the Company's name and branding and expect
to conclude this process during February.
Cameron Parry, Kolar Gold CEO, commented: "The Company is ready
to enter into its next phase, building on the work over the last
few months, under a new corporate identity that we look forward to
announcing shortly. We would like to thank all shareholders for
bearing with us over the last few months as we look to embrace the
opportunities your Company now has.
"As of today's date, the Company has a 15.4% interest in 24km(2)
of highly prospective licenced ground in central East Finland that
should see first gold production through bulk sampling in Q3 this
year. We have 20.5% of a leading India exploration and mine
development company with a portfolio encompassing more than 30
licences and applications covering an area of approximately
900km(2) in India. In addition we have 50% of a fintech gold
trading platform joint venture targeting the India market and an
additional 27.3% equity holding in our fintech JV partner
globally.
"This should be an exciting period for the Company as we look to
grow our interests on all three fronts and commence revenues this
year in two of our divisions, being our Finland gold project and
the India-focused fintech platform, and subject to the results of
the EFS, progress development of India's first privately-held gold
mine with a view to seeing first production in Q4 2018."
India Gold
Kolar Gold now holds 20.5% of leading India exploration company,
Geomysore Services (India) Private Limited ("Geomysore"), which at
its most advanced project, Jonnagiri, is in the process of
undertaking an Economic Feasibility Study ("EFS") to progress to
'decision to mine' stage. Jonnagiri currently has an estimated JORC
compliant resource of 351,000 ounces (indicated and inferred) as
announced to market on 21 October 2016.
Drilling is expected to conclude at Jonnagiri at the end of
January. Thereafter it is expected that a revised JORC compliant
resource will be available by the end of February, with the
publication of the full EFS expected by late April. Concurrently,
Geomysore is in discussions as to how best (from a commercial, risk
and dilution perspective) to finance Jonnagiri, subject to the
results of the EFS, to become a producing gold mine by the end of
2018.
The Company is also having exploratory discussions with
Geomysore and its shareholders as to means by which Kolar Gold
might increase its interest in Geomysore and exposure to its
multiple other prospective licences set for exploration and
potential development following Jonnagiri.
Finland Gold
As announced on 5 January 2017 Kolar Gold currently holds 15.4%
of a newly incorporated Finnish operating company, Kalevala Gold Oy
("Kalevala"), with five granted prospecting licences and approval
to carry out bulk sampling of 10,000 tonnes of gold ore this year,
targeting production of 100 kilograms (approximately 3,200 ounces)
of gold in Q3 2017. The Company will take its interest to 28.3%
following the budgeted payment of EUR350,000 by 28 February 2017.
Thereafter Kolar Gold will consider increasing its interest in
Kalevala up to 50% by the end of H2 2017 in the build up to this
first gold production.
Fintech Gold
In terms of its financial technology division, Kolar Gold has a
50% joint venture interest in adapting and marketing an online gold
holding and trading exchange targeting the India market, along with
27.3% of its Joint Venture technology partner, TRAC Technology
Limited.
Development of the Indian joint venture branding and site is
well underway and we expect the site to go live in March, enabling
Indian customers to buy and store precious metals under the new
brand, before a more publicised and promoted launch later in the
year.
Issue of Options
The Company announces that it has issued the 19.8m Management
Options ("Management Options") described in the Company's circular
and announcement dated 12 July 2016, at an exercise price of 2.2p
each (approximately 90% premium to current share price) and with a
three-year term, expiring 31 December 2019.
The Management Options represent the total number of options on
issue. They shall vest with immediate effect and are to be awarded
to the three directors of the Company as per the table below.
Director Role Number Exercise Exercise
of Options Period Price
End
------------ ---------------- ------------ --------- ---------
Cameron Chief Executive 10,000,000 31 Dec 2.2p
Parry Officer 2019 each
------------ ---------------- ------------ --------- ---------
Luke Cairns Executive 8,000,000 31 Dec 2.2p
Director 2019 each
------------ ---------------- ------------ --------- ---------
M. Hanuma Non-Executive 1,800,000 31 Dec 2.2p
Prasad Director 2019 each
------------ ---------------- ------------ --------- ---------
For further information, please visit www.kolar-gold.com or
contact:
Kolar Gold Limited Tel: +44 (0) 207 397 2880
Cameron Parry (Chief Executive Officer)
Luke Cairns (Executive Director)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394 6600
Tim Feather
Ed Allsopp
Vicarage Capital Limited (Broker) Tel: +44 (0) 203 651 2911
Rupert Williams
Jeremy Woodgate
Tavistock (Financial PR) Tel: +44 (0) 207 920 3150
Emily Fenton
This information is provided by RNS
The company news service from the London Stock Exchange
END
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