SINGAPORE: BlackGold Natural Resources Limited announced that it has received a letter of intent (LoI) from S Lad Group for a proposed strategic collaboration on the Group’s mining assets and an acquisition of the Company.

The LOI is intended to be a basis for further negotiations between the Company and S Lad Group and does not constitute any legally binding obligations on the Parties.

The S Lad Group, led by Shri Santosh S Lad (Former Minister of Government of Karnataka) is a corporate house in South Indian State of Karnataka. Headquartered in Bangalore, the S Lad group is one of the oldest and largest suppliers of iron ore from the South Indian State of Karnataka.

With more than five decades of experience in the mining business, it has diversified the mining business into several units such as the manufacturing of pig iron and various other activities.

The S Lad Group has substantial interest in over 16 diversified companies which are into information technology, real estate, entertainment industry and aviation. The S Lad Group businesses include IT firms, air cargo company, real estate development firms, movie and TV production companies, as well as online entertainment portals.

With extensive experience of the S Lad Group in the mining industry, the potential business collaboration is envisioned to attain synergies for BlackGold’s operations by tapping on S Lad Group’s extensive mining expertise. In addition, there is potential to create inroads to new market opportunities in India for BlackGold.

Previously in February 2020, the Group announced a 4-prong strategy to build strategic partnerships, establish offtake agreements, harness growth opportunities and strengthen financial foundation so as to capitalise on new opportunities within the resource industry in Asia, Papua New Guinea and Australia.

Then in March 2020, BlackGold completed a fundraising exercise for an aggregate S$2 million of interest-free convertible bonds.

Soh Sai Kiang, Chairman of BlackGold, said, “The S Lad Group’s letter of intent marks an exciting development for BlackGold because both companies share a commitment to support the long-term growth prospects of energy demand in Asia. As the Group proceeds with negotiations and formulating a response to the LOI, it is envisioned that the proposed transaction, when brought to fruition, will mean significant long term potential for synergies and multiple growth levers to expand our markets and range of commodities including iron ore.”