The Supreme Court of India has upheld the vested rights of mining lease applicants where a decision to grant a lease was taken prior to the 2015 amendments to the Mines and Minerals (Development and Regulation) Act, 1957. The judgment, delivered on June 9, 2026, in Writ Petition (Civil) Diary No. 35746 of 2026, clarifies that such cases will not be treated as "pending applications" and are exempt from the subsequent statutory regime mandating auctions. Deccan Gold Mines is evaluating the implications of this order for its Ganajur project.

Legal Ruling on Vested Rights

The Court ruled that if a state government decided and recommended a mining lease to the central government before 2015, the applicant's rights are considered accrued and vested. This status remains valid regardless of the formal communication of the grant order or the execution of the mining lease deed. The judgment specifically addresses the conflict between pre-2015 decisions and the introduction of Section 10A, which prescribed auction as the primary route for granting mining leases post-2015.

The order further states that the provisions of Section 10A, inserted in 2015, and the lapse provisions introduced in 2021, do not apply to cases where the decision to grant was already made. The Court emphasized that the general rule of "no decision till communication" does not apply when a prior approval from the central government exists under Section 5(1) of the Act.

Implications for Deccan Gold Mines

Deccan Gold Mines Limited disclosed that its legal team is examining the judgment's impact on the pending proceedings concerning the Ganajur project. The company noted that the ruling affirms that applicants with preferential rights under Section 11(1) of the MMDR Act, who secured a decision prior to 2015, remain protected from the auction route. The Ganajur project is a key asset for the company, and the legal clarity provided by the Supreme Court may influence its operational trajectory.

Key Judicial Observations

The Court dismissed the Public Interest Litigation (PIL) challenging the grant of a mining lease in Gadchiroli District, Maharashtra. It observed that the notion of public interest in resorting to auction was misplaced in cases where vested rights had already accrued. The judgment also referenced the legal opinion of the Attorney General for India, which supported the state government's decision to grant the lease outside the auction process.

The Court clarified that while the rights to the lease are upheld, no mining operations can commence without obtaining statutory approvals such as mining plans, environmental clearance, and forest clearance.

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:

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: