Resurgere Mines & Minerals India Ltd. announced that Merrill Lynch International has taken a 12.74% stake in the firm. Resurgere Mines & Minerals India is engaged in the business of extraction, processing and sale of mineral products and exploration and development of mining assets.
The Company's diverse product range includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and Iron ore fine etc. and bauxite. It sells all these products domestically except iron ore fines which it exports to China. It is one of the few Companies in the mining industry to have obtained ISO 9001:2000 and ISO 14001:2004 Certification from UKAS, United Kingdom. Furthermore, the Company is a recognised Star Trading House of India and is also member of various business councils i.e. CAPEXIL, FIEO, FIMI etc.
The Company proposes to enter the capital markets with a public issue of 5,000,000 equity shares of Rs 10 each through 100% book building process and it has filed DRHP with SEBI for the purpose. Motilal Oswal Investment Advisors Pvt. Ltd is the BRLM for the Issue. The company proposes to fund purchase of plant and machinery for setting up of its extraction and crushing facilities at the mines, and purchase railway rakes to set up its logistics infrastructure facilities through the net proceeds of the Issue.
Resurgere Mines & Minerals' Operational Income and Profit after Tax (PAT) after restatement of financial statements for the financial year ending March 31, 2007 was Rs. 1642.43 millions and Rs. 316.40 millions respectively and for four months ending July 31, 2007 it was Rs. 724.07 millions and Rs. 184.67 millions respectively. Its Operational Income and PAT have grown at a CAGR of 17.29% and 321.71% respectively over the period of three years.
The Company currently operates in Nuagaon, Kendujhargarh district and Maharajpur, Mayurbhanj district of Orissa and it purports to commence operations in Singhbhum district of Jharkhand in the near future. It has entered in to long term contracts for these mines, Nuagoan and Maharajpur, with the leaseholders for raising and purchasing of iron ore. It has also entered into similar arrangement with a leaseholder in a mining area in the West Singhbhum district of Jharkhand for the raising of iron ore and then supply of entire production of the mine to it. All the three mines carry high quality iron ore of about 62% – 64% Fe content.
The Company has made an application to the Collector of Sindhudurg district for the grant of an iron ore mining lease over an area of 108.77 hectares in village Banda, District Sindhudurg in Maharashtra. It has also applied for two prospecting leases of iron ore in Banda region to the Collector of Sindhudurg district. Further, the Company is also engaged in merchant export of iron ore fines to China.
Resurgere Mines & Minerals also proposes to venture in bauxite mining and processing business in the near future and hold a mining lease over bauxite mine situated in Yelwan Jugai, Maharashtra through its wholly owned subsidiary M/s. Warana Minerals Private Limited (WMPL). WMPL is a partner with 60% share in a registered partnership firm, Shri Warana Minerals which is engaged in the business of mining bauxite ore under the said 30 year mining lease.
Source: Money Control