Sesa Goa Limited, a Vedanta Group company, has signed definitive Share Purchase Agreement with Goa-based Dempo Group.

Under the arrangement, Sesa Goa will acquire all the outstanding common shares of VS Dempo and Co Pvt. Ltd, which owns 100 per cent equity shares of Dempo Mining Corporation Pvt. Ltd and 50 per cent in Goa Maritime Pvt. Ltd. for a total consideration of Rs 1,750 crore.

The deal will be funded by Sesa Goa through internal accruals, which stand at Rs 4,143 crore as on March 31, 2009.

VSD, one of the largest exporters of iron ore from Goa, owns the rights to mine-able reserves and resources estimated at 70 million tonnes of iron ore in Goa.

The company's assets include processing plants, barges, jetties, trans-shippers and loading capacities at Marmugao port. It produced 3.94 million tonnes of iron ore and sold 4.36 million tonnes in FY'09.

Ahead of positive announcement, the shares of the company were trading at Rs 213 on BSE, up 11% compared to previous close of Rs 192.