Deccan Gold Mines Ltd has signed a definitive Earn-In, Option and Shareholders Agreement to acquire a controlling stake in Logrosan Minera S.L., a Spain-based company with tungsten and gold exploration assets.
The company will initially acquire a 51 percent stake through an investment of €1.76 million, either directly or through its wholly owned subsidiary DGFZCO.
Shares of Deccan Gold Mines were trading at Rs 165.89, down 0.52 percent during the session. The company has a market capitalization of Rs 3,272.30 crore.
The stock has declined 2.99 percent over the last five trading sessions but has gained about 42.08 percent over the past month. It touched a 52-week high of Rs 181.50 and a low of Rs 114.80.
Option to raise stake to 75%
The acquisition is expected to be completed progressively by March 2027.
After acquiring the initial stake, Deccan Gold will have the option to increase its holding to 75 percent.
The increase will require:
- Additional investment.
- Payment of €1 million to the existing shareholder.
- Fulfilment of agreed milestones.
- Independent valuation.
Assets located in mineral-rich region
The project is situated in a highly mineralized region of Spain with occurrences of:
- Tungsten.
- Tin.
- Rare earth elements.
- Niobium.
- Tantalum.
- Gold.
The assets include:
- Logrosan licence area: Around 37 sq. km.
- Maria Gold Project: Around 40 sq. km.
An application has also been filed to expand the Logrosan licence by another 30 sq. km.
Exploration results
Previous exploration work included:
- Ground magnetic surveys.
- Soil sampling.
- RAB drilling.
- Diamond core drilling.
The drilling campaign identified zones containing scheelite, a tungsten-bearing mineral.
Notable drill intersections included:
- 3 metres grading 0.42 percent WO₃.
- 2.7 metres grading 0.29 percent WO₃.
- 9 metres grading 0.32 percent WO₃.
A fresh drilling programme is currently underway to further define mineralized zones.
Management said early indications suggest the Dehesa target could represent a significant tungsten discovery.
Focus on critical minerals
Tungsten is classified as a critical mineral because of its applications in:
- Defence systems.
- Aerospace.
- Semiconductors.
- Industrial tools.
- Advanced manufacturing.
According to the company, China accounts for about:
- 80-85 percent of global tungsten production.
- More than 75 percent of processing capacity.
Management comments
Managing Director Dr. Hanuma Prasad Modali said the acquisition strengthens the company’s exposure to critical minerals and supports its strategy of building a globally diversified portfolio.
He said resource security and supply-chain resilience are becoming increasingly important worldwide.
Mining-friendly jurisdiction
The company highlighted several advantages offered by Spain, including:
- 100 percent foreign ownership.
- No production-based royalties.
- Competitive operating costs.
- Support from the European Union’s Critical Raw Materials Act.
About the company
Founded in 2003, Deccan Gold Mines Ltd is engaged in gold and critical mineral exploration.
The company and its subsidiaries hold assets across:
- India.
- Kyrgyzstan.
- Chhattisgarh.
- Spain.
- Mozambique.
- Finland.
- Tanzania.
TL;DR
Deccan Gold Mines has signed an agreement to acquire an initial 51 percent stake in Spain-based Logrosan Minera for €1.76 million. The company also has the option to increase its holding to 75 percent. The project provides exposure to tungsten, a critical mineral used in defence, aerospace and semiconductor industries.
AI Summary
- Deccan Gold Mines will acquire a 51 percent stake in Logrosan Minera.
- The initial investment amounts to €1.76 million.
- The company has an option to raise its stake to 75 percent.
- The Spanish project contains tungsten and gold exploration assets.
- Tungsten is a critical mineral used in defence and semiconductor applications.