Deccan Gold Signs Earn-In Agreement for 51% Stake in Spanish Tungsten Project
Deccan Gold Mines Limited has entered a definitive Earn-In, Option and Shareholders Agreement to acquire a 51% stake in Logrosan Minera S.L., Spain, for EUR 1.76 million by March 2027, with options to scale up to 95%. The Logrosan Tungsten Project spans 37 km² and 40 km² licenses, with drilling results confirming tungsten mineralisation including 9m @ 0.32% WO₃. The move aligns with global critical minerals supply-chain priorities across defence, aerospace, and advanced manufacturing sectors.
*this image is generated using AI for illustrative purposes only.
Deccan Gold Mines Limited has signed a definitive Earn-In, Option and Shareholders Agreement to progressively acquire a 51% stake in Logrosan Minera S.L. (LMSL), Spain, for an earn-in investment of EUR 1.76 million by March 2027. The agreement provides a pathway for the company to secure operational control of the Logrosan Tungsten Project, a district-scale critical minerals opportunity in a highly mineralised region of Spain. This strategic move strengthens Deccan Gold's international portfolio of assets essential for defence, aerospace, and advanced manufacturing, aligning with global priorities for resource security and supply-chain resilience.
Stake Structure and Investment Terms
Under the agreement, Deccan Gold will invest EUR 1.76 million to earn the initial 51% stake. The company holds the option to increase its ownership to 75% through a further direct investment of EUR 1.0 million, subject to independent valuation and agreed milestones. Subsequently, the stake can potentially rise to as much as 95% through future funding participation and dilution provisions, while the existing shareholder, Logrosan Minerals Limited (LMLUK), retains a non-dilutable minimum interest of 5%.
The key transaction details are summarised below:
| Particulars | Details |
|---|---|
| Target Entity | Logrosan Minera S.L. Spain |
| Stake Acquired | 51% |
| Cost of Acquisition | EUR 1.76 million |
| Nature of Consideration | Cash / Earn-in |
| Completion Timeline | March 2027 |
| Total Paid-up Capital | 3,006.00 € |
Exploration and Drilling Results
Logrosan Minera S.L. holds granted exploration licenses, including the 37 km² Logrosan project and the 40 km² Maria project. The projects offer exposure to tungsten, gold, tin, rare earth elements, niobium, and tantalum. Exploration work, including ground magnetic surveys and soil sampling, has identified multiple targets. A six-hole diamond drilling campaign intersected multiple veins of potentially economic scheelite (tungsten) mineralisation, with significant results including 3m @ 0.42% WO₃, 9m @ 0.32% WO₃, and 2.7m @ 0.29% WO₃. A drilling programme is currently underway to extend and define these mineralised zones.
Dr. Hanuma Prasad Modali, Managing Director, stated that the definitive agreement marks an important step in building a globally diversified portfolio of gold and critical mineral assets. He noted that access to critical minerals is emerging as a key driver of economic competitiveness and industrial growth.
Financials of Logrosan Minera S.L.
The financial history of Logrosan Minera S.L. reflects its early-stage exploration status, as indicated in the table below:
| Year | Turnover (Rs) |
|---|---|
| 2023-2024 | Nil |
| 2022-2023 | Nil |
| 2021-2022 | (27000) |
Historical Stock Returns for Deccan Gold Mines
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.01% | +12.39% | +23.12% | +70.80% | +70.80% | +70.80% |
How will Deccan Gold Mines finance the EUR 1.76 million earn-in investment, and what impact will this have on its cash flow and debt levels?
What are the specific milestones required to exercise the option to increase ownership to 75%, and are there any risks to meeting them by March 2027?
How does the current drilling program's results compare to industry benchmarks for economic viability in tungsten mining?
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