Synopsis: Deccan Gold Mines has signed a definitive earn-in agreement to acquire an initial 51 percent stake in Spain-based Logrosan Minera through an investment of EUR 1.76 million, with an option to increase its holding to 75 percent. The project provides exposure to tungsten, a critical mineral used in defence, semiconductors, aerospace, and advanced manufacturing industries.
Shares of Deccan Gold Mines Limited are likely to remain in focus after the company announced the signing of a definitive Earn-In, Option and Shareholders Agreement to acquire a controlling stake in Logrosan Minera S.L., a Spain-based company holding prospective tungsten and gold exploration assets.
Deccan Gold Mines Limited has a total market capitalization of approximately Rs. 3,272.30 crore. The company’s shares were trading at Rs. 165.89 apiece on the stock exchange, down by 0.52 percent during the session. The stock has declined around 2.99 percent over the last five trading sessions and delivered a return of nearly 42.08 percent over the past month, reflecting a mixed performance. The stock touched a 52-week high of Rs. 181.50 and a 52-week low of Rs. 114.80.
Deccan Gold Mines Limited has been actively expanding its portfolio of gold and critical mineral assets following a management change in 2021. The latest transaction marks another significant step in the company’s strategy to build an internationally diversified mining portfolio.
According to the company’s filing, Deccan Gold will initially acquire a 51 percent stake in Logrosan Minera through an earn-in investment of EUR 1.76 million, either directly or through its wholly owned subsidiary DGFZCO. The acquisition is expected to be completed progressively by March 2027. Upon completion, the company will have the option to increase its stake from 51 percent to 75 percent through an additional investment and payment of EUR 1 million to the existing shareholder, subject to agreed milestones and independent valuation.
The Logrosan project is located in a highly mineralized region of Spain known for tungsten, tin, rare earth elements, niobium, tantalum, and gold occurrences. The granted Logrosan licence covers approximately 37 sq. km, while the nearby Maria Gold Project spans around 40 sq. km. An application has also been submitted to extend the Logrosan licence area by an additional 30 sq. km.
Exploration activities carried out by project partners have already identified multiple targets through ground magnetic surveys, soil sampling, RAB drilling, and diamond core drilling programs. The drilling campaign intersected several zones of potentially economic scheelite mineralization, a key tungsten-bearing mineral. Notable drill results include intersections of 3 metres grading 0.42 percent WO₃, 2.7 metres grading 0.29 percent WO₃, and 9 metres grading 0.32 percent WO₃.
A drilling program is currently underway to further define and expand mineralized zones within the project area. Management stated that early evidence suggests the Dehesa target could represent a significant tungsten discovery, while the broader region also offers substantial upside potential in gold and rare earth elements.
The strategic importance of the project is enhanced by the growing global demand for tungsten. Tungsten is considered a critical mineral due to its unique physical properties and lack of effective substitutes. It is extensively used in defence systems, aerospace applications, semiconductors, industrial tools, and advanced manufacturing technologies. Currently, China dominates approximately 80–85 percent of global tungsten production and more than 75 percent of processing capacity, making alternative supply sources increasingly important.
Commenting on the development, Managing Director Dr. Hanuma Prasad Modali stated that the acquisition strengthens Deccan Gold’s exposure to critical minerals and supports its strategy of building a globally diversified portfolio of gold and critical mineral assets. He added that resource security and supply chain resilience are becoming strategic priorities worldwide, increasing the importance of access to critical minerals.
Spain also offers an attractive mining jurisdiction, with 100 percent foreign ownership permitted, no production-based royalties, competitive operating costs, and alignment with the European Union’s Critical Raw Materials Act, which aims to streamline permitting and encourage mineral development.
Incorporated in 2003 by Australian promoters with extensive mining and exploration experience, Deccan Gold Mines Limited is engaged in gold and critical mineral exploration activities. The company and its wholly owned subsidiary have pursued exploration projects using modern technologies across India and international markets. Today, Deccan Gold holds a portfolio of gold and critical mineral assets across India, Kyrgyzstan, Chhattisgarh, Spain, Mozambique, Finland, and Tanzania.
The proposed acquisition provides Deccan Gold with exposure to a strategically important critical mineral at a time when governments and industries globally are seeking to diversify supply chains away from concentrated sources. If exploration activities continue to deliver positive results, the Logrosan project could become a key growth driver for the company in the years ahead.
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