Nature of the Event

Deccan Gold Mines Limited has entered into a definitive Earn-In / Option and Shareholders Agreement to acquire a stake in Logrosan Minera S.L. (LMSL) Spain, disclosed under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Investment Details and Structure

  • Initial acquisition of 51% stake in LMSL through earn-in investment of EUR 1.76 million
  • Investment to be made by Deccan Gold and/or its wholly owned subsidiary DGFZCO
  • 51% acquisition expected to be completed progressively by March 2027
  • Option to increase stake from 51% to 75% through further direct investment of EUR 1.0 million
  • Additional investment subject to independent valuation and achievement of agreed milestones
  • Payment of incremental consideration to existing shareholder Logrosan Minerals Limited, United Kingdom (LMLUK)
  • Post-acquisition funding on pro-rata basis to maintain shareholding
  • Non-contributing party subject to dilution with LMLUK retaining non-dilutable minimum interest of 5%
  • Deccan Gold can potentially increase stake up to 95%

Project Information and Exploration Details

  • Investment deployed toward exploration and development of mineral assets in Spain
  • Projects include 37km² Logrosan and 40km² Maria projects in mineralized region of Spain
  • Known for tungsten, tin, rare earth elements, and gold occurrences
  • Application to extend Logrosan licence area by further 30km² has been lodged
  • Partners have undertaken greenfield exploration including ground magnetic surveys and comprehensive soil sampling
  • Identified targets for tungsten (W), gold (Au), tin (Sn), phosphorous (P), REE, and Nb–Ta
  • Completed RAB drilling programme and 6-hole diamond core drilling programme
  • Drilling intersected multiple veins of potentially economic scheelite (tungsten) mineralisation

Drilling Results Highlights

  • LDD007: 3m @ 0.42% WO₃ from 258m
  • LDD013: 2.7m @ 0.29% WO₃ from 118.3m
  • LDD013: 9m @ 0.32% WO₃ from 192.2m

Current Operations

  • Drilling programme currently in progress to further define and extend mineralised zones
  • Early evidence suggests Dehesa could be significant tungsten discovery
  • Additional under-explored upside in gold and REE

Regulatory Requirements

  • Transaction subject to applicable statutory and regulatory approvals in India, Spain and UK

Management Commentary

Dr. Hanuma Prasad Modali, Managing Director, stated: "The definitive agreement for Logrosan marks another important step in Deccan Gold's strategy to build a globally diversified portfolio of gold and critical mineral assets. Securing a pathway to operational control of a prospective tungsten project in Spain strengthens our exposure to a mineral that is increasingly critical to defence, advanced manufacturing, semiconductors, and industrial technologies."

Jurisdictional Context

  • Spain offers 100% foreign ownership, no production-based royalties
  • Competitive labour and energy costs
  • Alignment with EU Critical Raw Materials Act
  • Streamlined permitting and processing incentives under Mineral Raw Materials Plan 2025–2029

About Tungsten Market

  • Tungsten has no easy substitutes
  • Supply chain dominated by China (~80–85% of production; >75% of processing)
  • Tungsten carbide accounts for ~65% of consumption
  • Additional demand from aerospace, defence, electronics and semiconductors

Company Background

  • Deccan Gold Mines Ltd is first and only gold and critical mineral resource company listed on BSE
  • Established in 2003
  • Portfolio includes projects in Andhra Pradesh, Kyrgyzstan, Chhattisgarh, Spain, Mozambique, Finland, and Tanzania