Deccan Gold Mines Limited has secured a debt funding facility of ₹20 crore from Hira Ferro Alloys Limited, Chhattisgarh, to finance the completion and development of its Altyn Tor Gold Project in the Kyrgyz Republic. The transaction, disclosed on August 03, 2026, provides critical capital for the mining initiative being executed by Avelum Partner LLC, a subsidiary of Deccan Gold. This funding move supports the company’s operational expansion in Central Asia without diluting existing shareholder equity.

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III- Para B of Part A of the Listing Regulations. The filing also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Subramaniam Sundaram, Company Secretary & Compliance Officer of Deccan Gold Mines Limited, signed the communication to the Corporate Relationship Department of BSE Limited.

Loan Structure and Terms

The debt agreement outlines specific repayment and security terms to mitigate lender risk while providing the borrower with necessary working capital for project execution. The loan is not classified as a related-party transaction, as Hira Ferro Alloys Limited holds no shareholding in Deccan Gold Mines Limited and is not linked to the promoter group.

The security for the loan involves a pledge of 2,50,000 equity shares held by Deccan Gold Mines Limited in Geomysore Services (India) Private Limited. The repayment is scheduled to occur in one or more tranches by the maturity date of October 31, 2026.

What the Numbers Show

The financing structure indicates a short-term liquidity bridge rather than long-term capital expenditure funding, given the repayment timeline of less than three months from the agreement date. By securing debt at a 12% interest rate instead of raising equity, Deccan Gold preserves current ownership stakes, though the high cost of capital suggests either urgent working capital needs or limited access to cheaper long-term financing instruments. The use of shares in Geomysore Services as collateral isolates the risk to that specific asset holding, protecting other corporate assets from immediate seizure in case of default.

Deccan Gold Mines has reported encouraging drill results from its Logrosan Tungsten Project in Spain, confirming the presence of potentially economic tungsten and tin mineralisation. The findings from the Dehusa target indicate a robust mineralised system that could support future underground mining operations. This development strengthens the company’s international critical minerals portfolio as global demand for strategically important resources intensifies.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Drilling at the Dehusa Tungsten-Tin target commenced in mid-March 2026. To date, seven drill holes (LDD013 to LDD019) have been completed, covering a total of 2,984 m. Drill hole LDD020 is currently in progress. Laboratory analytical results for holes LDD013, LDD015, LDD016, and LDD017 have confirmed high-grade tungsten mineralisation.

Key Drill Intersections

The highest assay results include 0.88% WO3 over 470 metres in hole LDD016 and 1.21% WO3 at 535 metres in hole LDD017. The widest intersection was recorded in LDD016, which intersected a zone of 7.5 m averaging 0.29% WO3. Significant intersections are detailed below:

What the Numbers Show

The consistent intersection of potentially economic tungsten or tungsten-tin mineralisation across every completed drill hole suggests a broad hydrothermal system rather than isolated veins. The presence of outcropping mineralisation, confirmed at depth, indicates that mineralisation may extend along the central axis of the S-shaped Dehusa anomaly for approximately 3 km. This continuity supports the potential for substantial tungsten resources within the wider mineralised envelope.

Drilling at other exploration targets within the Logrosan project, specifically Las Brujas and Logrosan North, is planned for October and November 2026. Full assay results for the current programme are expected by mid-September. Deccan Gold holds an option to acquire up to 95% stake in Logrosan Minera S.L., which controls the 37 km² Logrosan and 40 km² Maria projects in Spain.