Kolar Gold reveals plans to expand network in India

Kolar Gold on Monday announced plans to increase operations in India and close down its Australian office early this year.

The closure of the Australian office is part of a cost saving plan for the gold exploration and mine development company. It will see Chief Executive Officer, Nick Spencer, and General Manager, Chris Clowes, operate out of the Bangalore head office of the group's partner Geomysore Services India (GMSI), allowing them to focus on India production.

Kolar and GMSI are working to secure new gold licences and partnerships with local mining companies in India.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The move follows a review of the corporate and exploration strategy which revealed cash reserves of £6.5m at December 31st.

"Kolar is entering an important period and it is key that we strengthen our team in India and focus efforts with GMSI and partners on a number of key gold licence permits and projects," Kolar Gold Chief Executive Officer, Nick Spencer, said.

"We are confident that this is the most prudent way to utilise our funds to achieve maximum shareholder value over the longer term. We remain committed to building India's leading gold exploration and mine development company with an increased portfolio of well funded, quality gold projects."

Shares climbed 1.28% to 9.88p at 14:10 Monday.

RD