Shyam Metalics announced yesterday evening that it has received a Letter of Intent (LoI) from the Industry, Energy, Labour, and Mining Department, Government of Maharashtra for Composite License for Iron Ore Block in the State of Maharashtra.

This is through its JV, Natural Resources Energy Private Limited (NREPL), wherein Dorite Tracon Private Limited, a promoter company of Shyam Metalics and Energy, holds 49% of the of the economic interest.

The said Composite Licence for Surjagad 1 Iron Ore Block for Iron Ore in Angudra, Ramunkal Meta, Puske Meta, Negal Meta village, Etapalli Taluka, Gadchiroli District is spread over an area of 1526 hectares.

As the ‘Preferred Bidder’ under the established Auction Rules, NREPL submitted a final price offer of 126.35%.

The LOI is valid for a period of one year from the date of issuance.

The stock has reacted positively to this news; opening 3% higher at Rs.616.70, the stock rose to an intraday high at Rs.622.95, up 4% though it can come down from this level and is now trading at Rs.612 levels.