Deccan Gold Mines Limited has entered into a definitive Earn-In and Shareholders Agreement to acquire a 51% stake in Logrosan Minera S.L. (LMSL), Spain, for an earn-in investment of EUR 1.76 million. The acquisition targets critical minerals exploration in a highly mineralised region of Spain, specifically for tungsten, tin, rare earth elements (REE), and gold. The transaction is expected to be completed progressively by March 2027 and is subject to statutory approvals in India, Spain, and the UK.

Stake Structure and Investment Terms

The agreement grants Deccan Gold the option to increase its stake from 51% to 75% through a further direct investment of EUR 1.0 million, subject to an independent valuation and achievement of agreed milestones. Subsequently, the parties will fund the project on a pro-rata basis, with non-contributing parties facing dilution. This structure enables Deccan Gold to potentially increase its stake up to 95%, while the existing shareholder, Logrosan Minerals Limited (LMLUK), retains a non-dilutable minimum interest of 5%.

The key transaction details are summarised below:

Exploration and Drilling Results

Logrosan Minera S.L. holds granted exploration licenses, including the 37 km² Logrosan project and the 40 km² Maria project. Greenfield exploration work, including ground magnetic surveys and soil sampling, has identified targets for tungsten, gold, tin, phosphorous, REE, and Nb–Ta. A drilling programme is currently in progress to define mineralised zones. Previous diamond core drilling intersected multiple veins of potentially economic scheelite (tungsten) mineralisation, with best results including 3m @ 0.42% WO₃ from 258m and 9m @ 0.32% WO₃ from 192.2m.

Dr. Hanuma Prasad Modali, Managing Director, stated that securing operational control of a prospective tungsten project strengthens exposure to a mineral critical for defence and advanced manufacturing. He noted that access to critical minerals is a key driver of long-term economic competitiveness.

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:

Godawari Power & Ispat Limited has extended a debt funding of ₹40 crore to Deccan Gold Mines Limited to finance the development of the Altyn Tor Gold Project in the Kyrgyz Republic. The loan agreement was executed on June 05, 2026, with an interest rate of 12% per annum on a quarterly compounding basis. The funds will support the project undertaken by Avelum Partner LLC, a subsidiary of Deccan Gold Mines Limited, and will also be used for general administrative purposes and working capital.

The transaction is secured by a pledge of 5,00,000 equity shares held by Deccan Gold Mines Limited in Geomysore Services (India) Private Limited. The tenure of the loan is set at 12 months, with interest payments due not later than 7 days before the end of the respective quarter. The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Terms of the Loan Agreement

The agreement outlines the financial structure and security arrangements for the debt funding. The following table summarizes the significant terms:

The parties confirmed that they are not related to each other in terms of promoter or promoter group holdings, and the transaction does not fall under related party transactions. The funds are specifically earmarked for the Altyn Tor Gold Project, marking a notable step in Deccan Gold Mines' overseas expansion efforts.