Availing of further loan and Change in utilisation of loan earlier availed.
DECNGOLD · price
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Deccan Gold Mines has availed an additional Rs. 40 crore debt from Godawari Power & Ispat Ltd, taking total borrowing from this lender to Rs. 120 crore (Rs. 50 crore in Feb 2025, Rs. 30 crore in July 2025, and now Rs. 40 crore). Up to 90% of the new loan will fund the Altyn Tor Gold Project in Kyrgyzstan (erection and early commissioning), with the rest for general corporate purposes. The loan carries a 36-month tenor at 12% per annum interest, compounded monthly and payable quarterly. The company also revised use of the earlier Rs. 30 crore loan — up to 75% can now go to the Kyrgyzstan project (instead of the earlier terms) due to project exigencies. Security is via a pledge of 414,603 equity shares of Geomysore Services India Pvt Ltd.
The company is leveraging up to accelerate its Kyrgyzstan gold project, which could boost future production and revenue if commissioning goes as planned. However, a 12% interest rate is relatively expensive and raises the debt servicing burden, so shareholders should monitor project milestones and cash flows closely.