31st Mar 2014 12:01
LONDON (Alliance News) - Kolar Gold Ltd Monday reported a wider first-half pretax loss as it continues to work on growth plans for its gold exploration and development business.
In a statement, the Indian-focused gold exploration and mine development company said its pretax loss widened to GBP1.6 million from GBP1.2 million for the corresponding period in 2012.
Chairman Harvinder Hungin said Kolar Gold is pursuing two strategies to develop a substantial gold exploration and development business in India. First, through its investment in GMSI, which may amalgamate with DGM to create India's largest gold company listed on the Bombay Stock Exchange," Hungin said in a statement.
"Secondly, after many years of work we are approaching the launch of the tender process for the privatisation of BGML, the acquisition of which, on acceptable terms, has been a long standing goal of Kolar Gold."
"We have also minimised the cash burn to preserve resources to enable Kolar Gold to participate at the level afforded by our current resources or further, through Kolar Gold potentially raising further capital. Major progress on both fronts is anticipated this year, although India remains a challenging and unpredictable environment in which to be certain as to timing," he said.
Kolar said it hasn't received any definitive proposal in connection with its interests in GMSI to consider at this point.
"Should it do so it will consider the merits of the proposal and whether its implementation would be in the best interest of Kolar Gold's shareholders. The board will report to shareholders if and when it is appropriate to do so," Kolar said in a statement.
The company had GBP4.0 million in cash and term deposits at the end of 2013.
Kolar Gold shares were Monday quoted at 4.375 pence, untraded.
By Samuel Agini; [email protected]; @samuelagini
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