Gujarat NRE to merge with Australian company

Kolkata, Nov 10(UNI) Gujarat NRE Coke Limited is merging with Zelos Resources, an Australian prospecting company, later this year as part of its global strategic expansion plan.

"We are merging with Zelos by the year end to have access to thermal and metallurgical coal and uranium", Gujarat NRE Vice- Chairman and Managing Director Arun Kumar Jagatramka today said.

Mr Jagatramka said the company board would meet on November 23 to give passage to the merger proposal.

The name of the new entity would be Gujarat NRE Resource Limited.

Gujarat NRE has already acquired 22 per cent stake in Zelos at a cost of 22 million Pounds.

The company is already holding 100 per cent equity in the Australian NRE Avondale, which would be the world's newest hard coking coal mine.

Mr Jagatramka said the group had recently secured access to a virgin block of 10,640 square km for oil and gas exploration in western Austrailia and started drilling in Chile and Peru for copper and gold exploration respectively in league with two local companies. The prospecting work oil and gas in western Austrailia wouild start very shortly, he said.

Gujarat NRE Ministeral Resources, the company's sister concrn, is making a Rights Offer to the existing shareholders, entitling each to 5,000 shares. The issue price, per equity share is Rs. two each, including a premium of Re one per share.

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