Kolar Gold Limited has issued an operational and strategic update following the placing and board changes as previously announced, completed on 29 July.
Kolar Gold chief executive Cameron Parry said: "Kolar Gold has entered a new chapter. We are pleased to report that the new management has made significant progress to remedy structural deficiencies and operational inefficiencies that existed within the Company previously.
"Concurrently we have been developing a strategy to build value and generate cashflow whilst managing risk.
"The opportunities India holds are vast and having now seen Kolar's Indian assets first hand and the commencement of the Economic Feasibility Study at the Jonnagiri project, there is the potential for the coming months to be pivotal in unlocking the value for the most advanced of Kolar's Indian gold interests, from which the company can achieve its goal of becoming a gold producer in India.
"We are also looking to develop complementary business opportunities for the Indian market and to become a co-operator of near-term cashflow generative gold projects within an alternative jurisdiction."
Since their appointment, the new executive team has undertaken a review of the historical operations of the company. Throughout the review it became apparent that Kolar Gold had been running with various inefficiencies that were now either redundant or inappropriate for a company of Kolar's size. With this in mind, the Board has put in place measures and controls to strictly manage costs, whilst centralising the management and operations of the business.
As part of these changes, the company is in the process of liquidating its wholly owned Australian subsidiary, Kolar Gold Pty Limited, simplifying the group structure and reducing the cost of unnecessary subsidiaries and advisers. The company has set up its operating office in the City of London. The new office address and telephone number to contact the Company are: Kolar Gold Limited, 107 Cheapside, London EC2V 6DN.
At 2:13pm: (LON:KGLD) Kolar Gold share price was +0.05p at 1.33p