Deccan Gold Mines Secures 51% Stake in Spanish Tungsten and Critical Mineral Project

Deccan Gold Mines Secures 51% Stake in Spanish Tungsten and Critical Mineral Project​

Deccan Gold Mines Ltd has entered a definitive Earn-In/Option and Shareholders Agreement concerning the Logrosan Minera S.L. tungsten project located in Spain. The agreement grants Deccan Gold, through an earn-in investment of EUR 1.76 million, an initial 51% stake in LMSL. This acquisition is scheduled to be progressively completed by March 2027.

The transaction involves the exploration and development of mineral assets held by Logrosan in Spain. Upon completion of the initial earn-in phase, Deccan Gold retains the option to increase its shareholding from 51% to 75%. This subsequent stake expansion is conditional upon achieving agreed milestones and an independent valuation, which requires a further direct investment of EUR 1.0 million paid to the existing shareholder, Logrosan Minerals Limited (UK).

In the long term, the parties will fund the project on a pro-rata basis. The structure allows Deccan Gold the potential to increase its stake up to 95%, while ensuring that LMLUK retains a minimum non-dilutable interest of 5%.

Project Scope and Resources​

The Logrosan site is part of a highly mineralized Iberian metallogenic belt, presenting as a multi-commodity critical mineral cluster. The granted 37km² Logrosan area has been explored for tungsten (W), tin (Sn), rare earth elements (REE), gold (Au), and Niobium - Tantalum (Nb-Ta).

Initial work included ground magnetic surveys and a comprehensive soil sampling program, which identified several targets for tungsten. A subsequent 6-hole diamond core drilling program followed preliminary testing and intersected multiple veins of potentially economic scheelite (tungsten) mineralisation at the site. An application to extend the Logrosan licence area by an additional 30km² has also been lodged.

The Maria Gold Project, covering a 40km² area within the broader Logrosan corridor, represents a near-surface gold and antimony system. Historical work and recent exploration have identified encouraging gold anomalies through stream sediment sampling, suggesting a mineralised trend across the zone.

Key results from the drilling program include:

Market Context: Tungsten and Critical Minerals​

Tungsten (W) is a dense, refractory metal with the highest melting point of any metal (~3,422°C) and holds critical importance as it has no easy substitutes. It is primarily mined as scheelite and wolframite.

The global supply chain for tungsten is currently dominated by China, which accounts for approximately 80 to 85% of production and over 75% of processing. Demand for tungsten carbide alone constitutes about 65% of consumption, with continued need from aerospace, defense, electronics, and semiconductor industries.

Deccan Gold Mines Ltd maintains a portfolio of gold and critical mineral assets across various global locations, having established itself as the first and only gold and critical mineral resource company listed on the Bombay Stock Exchange Limited (BSE).

DECNGOLD Stock Price Movement​

On Tuesday, shares of Deccan Gold Mines Limited rallied to close at ₹166.75, gaining 3.93% on the commodities stock. The equity traded with significant volume as 1.87 million shares were transacted during the session.