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The explosion took place in the residential compound of Khursheed Ahmad Sheikh at Meemandar in Shopian district this afternoon, resulting in injuries to five children, all aged between six and eight years, a police officer said.
The children were rushed to a hospital, where one of them, Salik Iqbal Sheikh, was declared brought dead, he added.
The remaining four include three boys and a girl.
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Initial investigations suggest that the children were fiddling with the explosive when it exploded, he said.
An investigation is underway to ascertain the nature of the explosive and how it reached the residential compound.