Deccan Gold Mines Limited has inaugurated the Jonnagiri Gold Project in Andhra Pradesh, marking a significant milestone in India's private-sector mining landscape. The inauguration ceremony took place on 24 June 2026, attended by Andhra Pradesh Chief Minister Shri N. Chandrababu Naidu. During the event, the Chief Minister laid the foundation stone for the expansion of the processing plant and announced the renaming of Jonnagiri village to "Swarnagiri". The project is expected to contribute substantially to the nation's domestic gold production and economic growth in the Kurnool District.

Project Overview and Operations

The Jonnagiri Gold Project currently processes approximately 1,000 tonnes of ore per day through a state-of-the-art facility. Annual gold production is estimated at 400-600 kilograms. Upon completion of the planned mill expansion, the processing capacity is expected to increase to approximately 2,500 tonnes per day, enabling the production of over 1 tonne of gold per annum. The facility also includes an on-site gold refinery.

Strategic Significance

Dr. Hanuma Prasad Modali, Managing Director of Deccan Gold Mines Limited, highlighted the project's role in reducing India's dependence on gold imports. He emphasized that responsible resource development at Jonnagiri unlocks long-term value for communities and the nation. The Chief Minister reiterated the project's potential to usher in a new phase of economic growth in the region and promised support for further land acquisitions and expansion initiatives.

Deccan Gold Mines Limited has secured a loan of ₹3 crore from Modali Consultants LLP to fund the development of its project. The debt funding carries an interest rate of 12% per annum, compounded quarterly, with a tenure of 12 months. The transaction is not a related party transaction and was conducted at arm's length.

The loan is secured by the pledge of 18,750 equity shares held by the borrower in Geomysore Services (India) Private Limited. The documentation for the loan was completed on June 23, 2026. The disclosure was made to BSE Limited under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Loan Details

The company confirmed that there is no shareholding in Modali Consultants LLP and that the lender is not related to the promoter or promoter group. The interest is payable at the end of the tenure.