The acquisition was carried out through the wholly-owned subsidiary of the company Sadbhav Natural Resources, which entered into an agreement to acquire 74 per cent stake in OBCL, the company said in a filing to the Bombay Stock Exchange.
OBCL directly and through its subsidiaries holds licences for prospecting iron ore, copper, lime stone in the provinces of Tele, Nampula, Monica, Niassa of African country Mozambique.
Upon completion of prospecting, the licences of OBCL would be converted into mining licences as per the mining law in Mozambique.
Sadbhav intends to have a separate set up for its mining operations and given the scale of its proposed mining operations, the company needs to significantly enhance its staff strengths in Mozambique and Ahmedabad office, the company added.
At present, Sadbhav is executing a number of mining services contracts for Gujarat Heavy Chemicals, Western Coal Fields and Northern Coal fields Ltd with capacity of 20 million cubic meters per annum.