Deccan Gold Mines Secures ₹20 Crore Debt Funding from Hira Infra Tek for Kyrgyz Gold Project

Gold exploration major Deccan Gold Mines Limited (DGML) has successfully completed documentation to secure a short-term debt funding facility of ₹20 Crore from Chhattisgarh-based Hira Infra Tek Limited.

Financing the Altyn Tor Gold Project

The primary purpose of entering into this loan agreement is to provide capital to accelerate international mining operations. Deccan Gold Mines will utilize the proceeds primarily to finance the completion and development of the Altyn Tor Gold Project in the Kyrgyz Republic. The project is being actively executed by Avelum Partner LLC, a subsidiary of Deccan Gold.

Brief Terms of the Loan Agreement

The financial structure of the debt facility is tailored for short-term operational execution with the following key parameters:

Loan Quantum: ₹20 Crores

Tenure: 6 months

Interest Rate: 12% per annum, calculated on a quarterly compounding basis. The accrued interest is payable no later than seven days prior to the end of the respective quarter.

Collateral & Security: To secure the debt facility, Deccan Gold Mines has created a security cover by pledging 2,50,000 equity shares held by the company in Geomysore Services (India) Private Limited.

Shares of DECCAN GOLD MINES LTD. was last trading in BSE at Rs. 189.30 as compared to the previous close of Rs. 198.15. The total number of shares traded during the day was 278664 in over 2998 trades.

The stock hit an intraday high of Rs. 199.05 and intraday low of 185.70. The net turnover during the day was Rs. 53147341.00.

Source : Equity Bulls

Keywords

DECCANGOLDMINES INE945F01025 Mining DebtFunding