Deccan Gold Secures Pathway to 51% Stake in Strategic Spanish Tungsten Project

Deccan Gold Secures Pathway to 51% Stake in Strategic Spanish Tungsten Project​

Deccan Gold Mines Limited has signed a definitive Earn-In, Option and Shareholders Agreement for the Logrosan Tungsten Project in Spain. This agreement establishes a pathway for the company to acquire an initial 51% stake in the project by March 2027, aligning with the global trend toward securing critical mineral resources.

The transaction involves Deccan Gold investing EUR 1.76 million to progressively acquire the desired stake in Logrosan Minera S.L. By agreement, Deccan Gold will have the option to increase its ownership to 75%, subject to agreed milestones and independent valuation. There is also a potential for the company's stake to grow up to 95% over time through future funding participation and dilution provisions.

The Logrosan project, located within a highly mineralised region of Spain alongside the Maria Project, represents a district-scale opportunity spanning tungsten, gold, tin, rare earth elements, niobium, and tantalum. This diversification is key to Deccan Gold's strategy to build a globally resilient portfolio focused on strategic minerals critical for defence, aerospace, semiconductors, and advanced manufacturing.

Dr. Hanuma Prasad Modali, Managing Director of Deccan Gold Mines Limited, noted that the earn-in agreement was a significant step in building a globally diversified asset portfolio. He highlighted that beyond tungsten, the project offers exposure to a broader mineralised district with potential across gold, rare earth elements, tin, and other strategic minerals, positioning the company within the growing need for supply-chain resilience.

Exploration activities conducted by Deccan Gold's partners have already identified multiple targets through extensive soil sampling, geophysical surveys, and drilling programmes at Logrosan. A six-hole diamond drilling campaign revealed intersections of potentially economic scheelite (tungsten) mineralisation, including hits such as 3 metres at 0.42% WO₃, 9 metres at 0.32% WO₃, and 2.7 metres at 0.29% WO₃.

A drilling programme currently underway aims to further define the mineralised zones. Early results suggest that the Dehesa target holds significant potential not only for tungsten but also for gold and rare earth element mineralisation.

The significance of this project is underscored by the global classification of tungsten as a critical mineral due to its strategic importance in industrial applications, aerospace, defence, and electronics manufacturing. As governments globally seek secure sources of supply due to China's dominance in tungsten production and processing, the Spanish jurisdiction offers substantial advantages. Spain is noted for offering 100% foreign ownership, competitive operating costs, a skilled workforce, and alignment with the European Union's Critical Raw Materials Act.

Deccan Gold Mines Limited, established in 2003, remains India's first and only listed gold and critical minerals resource company. The company maintains an international portfolio across various mineral assets, including those in Andhra Pradesh, Kyrgyzstan, Chhattisgarh, Spain, Mozambique, Finland, and Tanzania.

DECNGOLD Stock Price Movement​

Shares of Deccan Gold Mines Limited slipped today, finishing at ₹158.56 after shedding ₹9.26 and experiencing a 5.55% decline in trading. The equity saw considerable movement during the session, trading within a range defined by a low of ₹156.60 and a high of ₹174.40, with over 2.59 million shares transacted.