Deccan Gold Mines zooms 20% after Supreme Court verdict on Hutti gold mines

In past three trading sessions, the stock has outperformed the market by surging 43% as compared to 1% rise in the S&P BSE Sensex.

Shares of Deccan Gold Mines were locked in upper circuit of 20% at Rs 62 per share, also its 52-week high on the BSE, after the positive verdict from the Supreme Court on Hutti gold mines.

In past three trading sessions, the stock has outperformed the market by surging 43% from Rs 43.35 on Friday, May 4, 2018, as compared to 1% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with 1.12 million shares changed hands and there were pending buy orders for 216,255 shares at 10:13 am on the BSE.

The Hon’ble Supreme Court vide its Judgment dated May 8, 2018 has set aside the Order passed by the Karnataka High Court dated April 3. 2012 and has allowed the company’s Civil Appeal,” Deccan Gold Mines said in a regulatory filing.

The Kamataka High Court erred in allowing the Writ Petition of Hutti Gold Mines Limited (HGML), a PSU owned by the Government of Kamataka. This Writ Petition “as filed by HGML against the Order dated May 31, 2011 passed by the Central Government.

The company said the decision of the Central Government vide its Order dated May 31, 2011 is upheld. This Order had rejected the proposal of the Government of Karnataka for reservation of the Hutti BIock areas in favour of HGML by overlooking the Prospecting License (PL) applications of our subsidiary, Deccan Exploration Services Private Limited (DESPL).

The State of Kamataka is directed to consider the case of DESPL for grant of PL in accordance with the provisions of the Mines & Minerals (Development & Regulation) Act, 1957 as they now stand amended in the year 2015.

Hutti Maski Greenstone belt is one of the most important Archaean gold bearing belts in India The Hum—Mask; belt hosts world class Hutti Gold deposit that is being mined by The Hutti Gold Mines Limited DESPL has carried out exploration over an area 851 sq. km in the Hutti Belt, which has resulted in identifying 21 gold bearing blocks. A total of 11 PL applications covering the 21 gold targets have been filed with the Kamataka State Government.