Deccan Gold Mines Ltd Acquires 51% Stake in Spanish Mineral Explorer LOGROSAN MINERA
Deccan Gold Mines Limited has entered into a Definitive Agreement for the acquisition of a 51% stake in LOGROSAN MINERA S.L. SPAIN (LOGROSAN). This transaction involves acquiring the stake through a cash consideration, aiming to collaborate on mineral exploration and potential development prospects within Spain.The acquisition is scheduled for progressive completion by March 2027. The cost of the purchase for Deccan Gold and/or its wholly owned subsidiary, DGFZCO, is set at Euro 1.76 million.
LOGROSAN MINERA S.L. SPAIN, incorporated on May 14, 2015, operates in a highly mineralized region of Spain known for occurrences of tungsten, tin, rare earth elements (REE), and gold. The company currently holds two granted exploration licenses, Antonio and Mari, covering a combined area of 7732.37 hectares. Furthermore, LOGROSAN has applied for an additional license, Logrosan North, spanning 3072.09 hectares, also focused on gold exploration.
The acquisition details indicate that the planned stake holds management control (51%). Upon successful completion and fulfillment of agreed milestones through a designated earn-in period, Deccan Gold retains the option to increase its shareholding from 51% to 75%. This expansion would require a further direct investment and payment of an incremental consideration of EUR 1.0 million to the existing shareholder of Logrosan.
The company's assets include exploration potential spanning critical minerals in Spain. The financial standing of LOGROSAN reflected certain losses over recent years, which are detailed below:
| Year | Turnover |
|---|---|
| Financial Year 2023-2024 | Nil |
| Financial Year 2022-2023 | Nil |
| Financial Year 2021-2022 | (27,000) |
As of the financial year 2023-2024, LOGROSAN's paid-up share capital is 3,006.00 €, and its Net Worth stands at (11,95,020).
DECNGOLD Stock Price Movement
Deccan Gold Mines Limited settled at ₹166.75 today, climbing 3.93% and closing higher in post-market trading. The stock saw robust activity during the session, with a total traded volume reaching 1.87 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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