Kolar Gold Limited - Operational update & issue of Director options

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 24km2 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 900km2 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 €350,000 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.




Number of Options

Exercise Period End

Exercise Price

Cameron Parry

Chief Executive Officer


31 Dec 2019

2.2p each

Luke Cairns

Executive Director


31 Dec 2019

2.2p each

M. Hanuma Prasad

Non-Executive Director


31 Dec 2019

2.2p each




For further information, please visit or contact:


Kolar Gold Limited

Cameron Parry (Chief Executive Officer)

Luke Cairns (Executive Director)


Tel: +44 (0) 207 397 2880


WH Ireland Limited (Nominated Adviser)

Tim Feather

Ed Allsopp


Tel: +44 (0) 113 394 6600


Vicarage Capital Limited (Broker)

Rupert Williams

Jeremy Woodgate


Tel: +44 (0) 203 651 2911


Tavistock (Financial PR)

Tel: +44 (0) 207 920 3150

Emily Fenton