Deccan Gold Mines Doubles Down: ₹150 Mn Equity Buy & ₹300 Mn Debt Boost Fuel Expansion Drive

Deccan Gold Mines Ltd (DGML) has announced two major financial moves to accelerate its gold mining ambitions—an equity investment in Geomysore Services and fresh debt funding from Godawari Power & Ispat Ltd. These developments come as DGML gears up for full-scale production at its Jonnagiri and Altyn Tor projects.

 

Key Highlights:

 

Equity Investment in Geomysore:

 

DGML will invest ₹150 million to acquire 93,750 shares of Geomysore Services (India) Pvt Ltd.

 

The move strengthens DGML’s stake in the Jonnagiri Gold Project, which recently received Consent to Operate from the Andhra Pradesh Pollution Control Board.

 

The funds will support land acquisition, equipment procurement, and civil works for the processing plant.

 

Debt Funding from Godawari Power & Ispat:

 

DGML has secured ₹300 million in additional debt funding, following a previous ₹500 million loan agreement.

 

The capital will be used to develop the Altyn Tor Gold Project in Kyrgyzstan, operated by DGML’s subsidiary Avelum Partners LLC.

 

The loan carries a 12% annual interest, with equity shares in Geomysore pledged as collateral.

 

Strategic Impact:

 

These moves reinforce DGML’s commitment to becoming a mid-tier gold producer.

 

The company is also advancing lithium exploration in Mozambique and expanding its global footprint.

 

DGML’s aggressive capital deployment signals a pivotal moment in India’s private gold mining landscape, with production targets set for late 2025.

 

Source: Economic Times, BusinessLine, Deccan Gold Mines Investor Filings