Critical Minerals Acquisition
Deccan Gold Signs Definitive Earn-In Agreement for Spanish Tungsten Project; Pathway to Majority Ownership Established
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Deccan Gold Mines Limited has entered into a definitive Earn-In, Option and Shareholders Agreement to acquire an initial 51% stake in Logrosan Minera S.L. (LMSL), Spain, through an investment of EUR 1.76 million. The transaction provides exposure to a prospective tungsten project and associated gold and critical mineral opportunities in Spain, with a pathway to increase ownership up to 95% over time.
PRICE-SENSITIVE TRIGGER
Event: Execution of a definitive Earn-In, Option and Shareholders Agreement for the Logrosán Tungsten Project in Spain.
Type: Strategic Investment / International Critical Minerals Acquisition
Impact: Positive
Immediate Effect: Deccan Gold secures an initial pathway to acquire operational control of a tungsten-focused critical minerals project in Spain, strengthening its international portfolio and expanding exposure beyond gold into strategic minerals.
Key Metrics:
- Initial earn-in investment: EUR 1.76 million
- Initial stake acquisition: 51%
- Target completion of 51% earn-in: By March 2027
- Additional investment option: EUR 1.0 million
- Potential ownership after option exercise: 75%
- Maximum potential ownership: 95%
- Logrosán project licence area: 37 km²
- Maria Gold Project area: 40 km²
- Additional licence application submitted: 30 km²
- Drill Result: 3m @ 0.42% WO₃ from 258m
- Drill Result: 2.7m @ 0.29% WO₃ from 118.3m
- Drill Result: 9m @ 0.32% WO₃ from 192.2m
Highlight
Initial Earn-In Investment: EUR 1.76 million for a 51% stake in Logrosan Minera S.L.
What Happened ?
Deccan Gold Mines Limited announced that it has signed a definitive Earn-In, Option and Shareholders Agreement to acquire a controlling stake in Logrosan Minera S.L. (LMSL), Spain.
Under the agreement, Deccan Gold and/or its wholly owned subsidiary DGFZCO will invest EUR 1.76 million to progressively earn a 51% stake by March 2027. Following completion of the earn-in, the company will have the option to increase its ownership to 75% through an additional EUR 1.0 million investment, subject to valuation and milestone achievement conditions.
The transaction provides exposure to the Logrosán Tungsten Project and the Maria Gold Project located within a highly mineralized region of Spain known for tungsten, tin, gold, rare earth elements, phosphorus and niobium-tantalum mineralization.
Key Details
Acquisition Overview:
- Deccan Gold will acquire an initial 51% stake through an earn-in investment of EUR 1.76 million.
- The 51% acquisition is expected to be completed progressively by March 2027.
- The company may increase ownership from 51% to 75% through an additional EUR 1.0 million investment.
- Subsequent project funding will be undertaken on a pro-rata basis by shareholders.
- Existing shareholder dilution mechanisms could enable Deccan Gold to increase ownership up to 95%.
- The transaction remains subject to statutory approvals and regulatory clearances in India, Spain and the UK.
Note:
- The agreement provides a structured pathway from minority ownership to potential operational dominance while limiting initial capital commitment.
Risk Analysis
Summary:
- The project remains in the exploration and development stage, with geological, regulatory and execution risks associated with advancing mineral assets.
Key Risks:
- Mineral exploration outcomes remain uncertain until additional drilling is completed.
- Economic viability of identified mineralization requires further technical evaluation.
- Transaction completion depends on regulatory and statutory approvals.
- Future funding requirements may increase as project development advances.
- Commodity price volatility could impact project economics.
- Cross-border operational and permitting risks remain relevant.
Worst Case Scenario:
- Exploration results may fail to support economically viable resource development, limiting the expected strategic and financial benefits of the acquisition.
Risk Level: High
Company Commentary
- Management described the agreement as an important step in building a globally diversified portfolio of gold and critical mineral assets.
- The transaction provides a pathway toward operational control of a prospective tungsten project in Spain.
- Deccan Gold believes critical minerals will become increasingly important due to supply-chain resilience requirements and industrial competitiveness.
- The company stated that Logrosán complements its growing portfolio across gold and critical minerals.
- Management emphasized its objective of building a globally relevant mining platform focused on future resource opportunities.
Official Exchange Filing: Deccan Gold Mines Limited