Key Quantitative Figures
- Debt funding amount: ₹40 Crore
- Interest rate: 12% per annum
- Loan tenure: 12 months
- Security: Pledge of 5,00,000 equity shares in Geomysore Services (India) Private Limited
Parties Involved
- Borrower: Deccan Gold Mines Limited
- Lender: Godawari Power & Ispat Limited, Chhattisgarh
- Project subsidiary: Avelum Partner LLC (Kyrgyz Republic)
- Security provider: Geomysore Services (India) Private Limited (through share pledge)
Purpose and Rationale
The debt funding will be utilized primarily for financing the completion and development of the Altyn Tor Gold Project being undertaken by Avelum Partner LLC, a subsidiary of Deccan Gold, in the Kyrgyz Republic. Funds will also be used for other project development, working capital, and general administrative purposes.
Significant Terms
- Interest calculation: Quarterly compounding basis
- Interest payment deadline: Not later than 7 days before end of each quarter
- No shareholding relationship between parties
- No special rights like board appointment, first right to share subscription, or capital structure restrictions
Capital Structure Impact
No direct equity issuance or dilution. Security provided through pledge of existing 500,000 shares in Geomysore Services (India) Private Limited.
Financial Impact
- Cash inflow: ₹40 Crore debt funding
- Interest expense: 12% per annum on quarterly compounding basis
- No financial impact quantification provided beyond stated terms