7 July 2016
This announcement contains inside information
Kolar Gold Limited
Funding for further drilling and completion of economic feasibility study by GMSI approved at EGM
Further to the announcement issued by Kolar Gold Limited (the "Company") on 6th July 2016 regarding the proposed US$2.4 million investment by Thriveni Earthmovers Private Limited into Geomysore Mining Services (India) Private Limited ("GMSI"), the Company is pleased to confirm that GMSI shareholders approved the transaction at an extraordinary general meeting held earlier today and that all conditions relating to this transaction have now been satisfied.
For further information please contact:
Kolar Gold Limited
+44 1481 702 400
N+1 Singer (Nomad and Broker)
James Maxwell / Jen Boorer
+44 20 7496 3000
Ed Portman / Nuala Gallagher
+44 20 7920 3150
About Kolar Gold Limited:
Kolar Gold is a partner and investor in an Indian gold exploration and mine development company in India, GMSI, and is also itself pursuing a gold project in the Kolar region in India, the privatisation of BGML. The company's shares are traded on the AIM market (Ticker: KGLD).
GMSI has a significant portfolio of gold permits and rights across India. It has rights to 32 known gold mineralised project areas including 22 granted Reconnaissance Permits, 2 Prospecting Licences and 1 mining lease area covering a total of 12,568 square kilometres in the states of Andhra Pradesh, Karnataka, Madhya Pradesh and Tamil Nadu. GMSI has a granted gold mining lease at Jonnagiri, Andhra Pradesh.
Kolar Gold is also jointly pursuing, with the BGML mine employee unions, the acquisition and revival of the historic BGML gold mine in the Kolar Goldfields in Karnataka. The BGML gold mine had produced 25 million ounces of gold over 120 years until its closure in 2001.The Kolar Goldfields is one of the most prospective underdeveloped Archaean Greenstone Belts in the world and is considered comparable to the Archaean Greenstone Belts of South Africa, Canada and Western Australia in geology, structure and style of mineralisation.