Sobhagya Mercantile Secures MDO Contract from AMDCL

Sobhagya Mercantile Ltd has been issued a Letter of Intent by the Assam Mineral Development Corporation Ltd (AMDCL) for a contract concerning the Vadakhol Asoli Ni, Cr, Co, and other associated mineral block in Maharashtra. The contract is awarded to SML Caliber SPV, with Sobhagya Mercantile as the lead member. This development follows the tender document dated July 16, 2025, and the Letter of Intent was issued on November 13, 2025. The contract involves obtaining a composite license, prospecting, and other statutory permissions, along with mining operations.

The financial terms of the contract include a performance security of INR 1.5 crore, which has been submitted via a bank guarantee from the Bank of Maharashtra, Dharampeth Branch. This guarantee is valid until November 13, 2030. The contract operates on a revenue-sharing basis with AMDCL, although the final consideration and size of the contract will be determined upon the signing of a detailed agreement and subsequent exploration activities.

The scope of the contract encompasses obtaining a composite license, prospecting, preparation of a geological report, mining plan approval, and other statutory permissions. It also includes land acquisition, drilling, excavation, transportation, and supply of minerals. The role of Sobhagya Mercantile as a mining development operator (MDO) involves the sale of minerals on a revenue-sharing basis with AMDCL from the designated block.

The timeline for the execution of the contract is linked to the validity of the performance security, which extends until November 2030. SML Caliber SPV is expected to enter into the contract agreement in due course. The detailed exploration of the allotted mine will commence following the signing of the agreement, which will also finalize the contract’s consideration and size.

Assam Mineral Development Corporation Ltd is a domestic entity focused on mineral development and mining operations within India. The corporation engages in partnerships and contracts to enhance mineral exploration and extraction activities, contributing to the regional and national mineral supply.

Sobhagya Mercantile Ltd is involved in various business activities, including mining and mineral development. The company focuses on expanding its operational capabilities and securing strategic contracts to enhance its market presence in the mineral sector. This contract with AMDCL represents a significant step in its operational expansion and strategic growth within the industry.