This article (link) was discussed on forums last night.
The article states:
‘Congress government in Karnataka will start the process of acquiring the township of Bharat Gold Mines Ltd (BGML) and its assets….’
Several have taken this to mean that Kolar Gold will not be part of any deal.
If however you read this article dated 5th March (link) it has the following paragraph;
‘Speaking with Deccan Herald, president of the Society and chief executive and director of JMJ Minerals, G Jayakumar, said they were in talks with Kolar Gold Company, a subsidiary of a gold exploration firm in Australia.’
This is a clear indication that the discussions are with Kolar Gold.
The following company structure chart highlights that the Kolar Group is Australian.
It is also worth reminding ourselves that after the strategic review is concluded the fall back option is to sell the assets and return the proceeds to the shareholders. The assets being worth 3.5p per share (see here).
It is therefore not a surprise that many are investing in Kolar Gold. The share price increased by 9.5% yesterday and the last trade of the day, being a significant £12.5k buy.
With a significant shortage of shares the share price is IMHO going to continue to rise and I wouldn’t be surprised if we have another investor declare a 1%+ holding in the near future.