Deccan Gold Mines Limited secured approval from its Board of Directors on August 07, 2026, for a substantial capital raise aggregating ₹130.67 crore through a preferential allotment of compulsorily convertible debentures (CCDs), equity shares, and equity warrants. The funds are designated for financing ongoing exploration projects, including the acquisition of a stake in Logrosan Minera S.L., addressing immediate liquidity requirements while supporting long-term production timelines. An Extra-Ordinary General Meeting (EGM) is scheduled for September 02, 2026, to seek shareholder approval for the issuance and related director appointments.

The issuance involves three distinct instruments priced uniformly at ₹191.90 per unit, determined in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The structure includes 8,57,216 CCDs carrying a 12% annual interest rate, 3,90,827 equity shares, and 59,26,196 equity warrants. All convertible instruments will transform into fully paid-up equity shares within 18 months of allotment. The warrant component requires a 25% upfront payment, with the balance due upon conversion; failure to exercise within the tenure results in forfeiture of the initial payment.

Investor Participation Details

The preferential issue targets non-promoter investors across three categories. Proposed Allottee 1 comprises four entities subscribing to CCDs, including Pooja Unichem LLP and Rupal Mukesh Dedhia. Proposed Allottee 2 includes Shila Minda and Shikha Goyal for the equity share component. The largest tranche, Proposed Allottee 3, involves 25 investors subscribing to equity warrants, led by Naushad Ahmed, SB Opportunities Fund I, and Usha Gangar.

Financial Context and Auditor Observations

This capital injection follows Q1FY27 standalone results where Deccan Gold Mines reported a net profit of ₹11.52 million, reversing a ₹155.90 million loss in the prior year period. While standalone operations improved, consolidated figures showed a net loss of ₹87.26 million, partly offset by a ₹66.44 million share of profit from associates. Statutory Auditors V. K. Beswal & Associates highlighted an emphasis of matter regarding unsecured inter-company loans of ₹22,480.65 million extended to subsidiary Avelum Partner LLC, with accrued interest of ₹3,096.38 million at 15% per annum.

What the Numbers Show

The reliance on convertible instruments, particularly warrants requiring only partial upfront capital, allows the company to raise significant funds with minimal immediate cash outflow from investors, deferring dilution until conversion. The stark contrast between standalone profitability and consolidated losses underscores the heavy financial burden of overseas exploration assets, such as the Altyn Tor Gold Project, which continues to consume cash despite operational improvements at the parent level.

Deccan Gold Mines has appointed Ms. Jade Gemma Devenish as a Non-Executive Non-Independent Director, effective August 07, 2026. The appointment was approved by the Board of Directors during a meeting held on Friday, August 07, 2026, which commenced at 4:30 p.m. and concluded at 07:35 p.m. This addition to the Board strengthens the company’s leadership team with an executive who has been instrumental in developing India’s first operational gold mine since Independence. The appointment is liable to retire by rotation and requires subsequent regularization through shareholder approval.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, in its filing with the BSE Limited. Subramaniam Sundaram, Company Secretary & Compliance Officer, signed the disclosure on behalf of the company.

Ms. Devenish brings significant industry experience to the Board. Having relocated from Australia to India in 2009, she has dedicated her career to the group’s mining ambitions. She served as Managing Director of Geomysore Services India Pvt Ltd (GMSI) from 2014 to 2023, having joined as a Director in 2009. Her tenure included leading the completion of the NI 43-101 Technical Report for the Jonnagiri Gold Project, overseeing fundraising, land leasing, statutory approvals, and feasibility studies that moved the project from concept to construction.

Appointment Details

Regulatory Compliance

The filing confirms that Ms. Devenish is not related to any existing Directors of the company. Furthermore, she is not debarred from holding the office of Director by virtue of any SEBI order or other authority, as required under Circular No. LIST/COMP/14/2018-19 dated June 20, 2018, issued by the BSE. The appointment will be regularized with the approval of shareholders at a subsequent meeting.