Deccan Gold Mines buys 51% Logrosan stake for €1.76m

Deal at a glance: controlling stake via earn-in

Deccan Gold Mines said it has signed a definitive earn-in/option and shareholders agreement to acquire an initial 51% stake in Spain-based Logrosan Minera S.L. (LMSL). The 51% interest will be earned through an investment of EUR 1.76 million, with completion expected to happen progressively by March 2027. After the earn-in is completed, Deccan Gold will hold an option to raise its stake to 75% through a further EUR 1.0 million investment. The step-up to 75% is subject to agreed milestones and an independent valuation. The company said the investment proceeds will be used for exploration and development of the Spanish mineral assets. The transaction remains subject to regulatory approvals in India, Spain and the UK.

What Deccan Gold is buying: two licensed projects in Spain

LMSL holds granted exploration licenses for two projects in Spain: the Logrosan project covering 37 square kilometres and the Maria project covering 40 square kilometres. Deccan Gold’s announcement positions these assets as part of its push into critical minerals alongside its gold interests. The company highlighted that the target areas are in a highly mineralised region and are being explored for tungsten, tin, rare earth elements (REE) and gold. Earlier exploration work at Logrosan also identified targets for niobium and tantalum (Nb–Ta), and the text also references phosphorous as a target in greenfield work. A drilling programme is currently in progress to define mineralised zones. Previous drilling has already intersected scheelite-bearing tungsten mineralisation.

Earn-in structure and the path to higher ownership

The agreement sets a staged ownership pathway rather than a one-time acquisition. Deccan Gold’s first step is the EUR 1.76 million earn-in to reach 51%, giving it a controlling interest. The next step is an option to increase ownership to 75% by investing another EUR 1.0 million, subject to milestones and independent valuation. Beyond that, the shareholders agreement provides for project funding on a pro-rata basis. If some shareholders do not contribute their share of subsequent funding, they can be diluted. Under this structure, Deccan Gold’s stake can potentially rise up to 95% through dilution of non-contributing shareholders. At the same time, the existing shareholder retains a minimum non-dilutable 5% interest, ensuring it stays invested regardless of future funding rounds.

Why tungsten is central to the strategy

In its statement, Deccan Gold linked the Spanish transaction to its broader goal of building a globally diversified portfolio of gold and critical mineral assets. Managing director Dr. Hanuma Prasad Modali said securing a pathway to operational control of a prospective tungsten project in Spain strengthens exposure to a mineral increasingly critical to defence, advanced manufacturing, semiconductors, and industrial technologies. The company also framed access to critical minerals as a driver of long-term economic competitiveness. The project’s polymetallic potential is part of the appeal, with exploration targets that include tungsten, tin, REE and gold across the licensed areas. Deccan Gold also said it is expanding beyond gold into critical minerals and referenced drilling programmes aimed at extending this strategy. The announcement fits with that positioning, as Logrosan is described as an early-stage exploration asset with drilling underway.

What exploration has found so far at Logrosan

The disclosure includes specific drilling intersections that point to tungsten mineralisation hosted by scheelite-bearing veins. Previous diamond core drilling intersected multiple veins described as potentially economic scheelite (tungsten) mineralisation. The best results cited were 3 metres at 0.42% WO₃ from 258 metres, and 9 metres at 0.32% WO₃ from 192.2 metres. Alongside drilling, earlier work mentioned in the text includes ground magnetic surveys and soil sampling, which helped identify targets across multiple commodities. The company also notes that an ongoing drilling campaign is aimed at expanding and defining the identified mineralised zones. No mineral resource estimate was disclosed in the provided text. The investment is described as being directed toward exploration and development.

Regulatory approvals and cross-border closing steps

The transaction is subject to statutory or regulatory approvals in three jurisdictions: India, Spain and the UK. Deccan Gold said the acquisition is expected to be completed progressively by March 2027, reflecting the earn-in structure rather than a single closing date. Because this is an investment into a Spain-based entity, the process involves cross-border compliance as well as project-level licensing considerations. The text does not specify the nature or timeline of each approval, only that they are pending. It also does not detail the exact milestones tied to the 75% option, other than noting they must be achieved and independently valued. Investors will likely track updates around approvals and the staged investment schedule as the earn-in progresses.

Funding obligations after earn-in: pro-rata and dilution mechanics

A key part of the shareholders agreement is what happens after the initial earn-in is completed. Subsequent project funding is to be undertaken on a pro-rata basis by shareholders. If any party does not contribute, it faces dilution, which can lift Deccan Gold’s ownership over time up to 95%. However, the agreement also protects the existing shareholder by granting a minimum non-dilutable 5% interest. This kind of structure can concentrate ownership with the funding party while still keeping minority alignment in place. It also makes future ownership outcomes dependent on how much capital is required and who contributes it. The company stated that the proceeds of the initial investment will go toward exploration and development, indicating near-term spending focus on field work.

Market snapshot: size of the investment and reported rupee equivalent

The consideration for the 51% stake is EUR 1.76 million. The text also reports an approximate rupee equivalent of about ₹15.84 crore for the same amount. Separately, the company has an option to invest an additional EUR 1.0 million to increase its stake from 51% to 75%, subject to milestones and valuation. One portion of the provided text also states the acquisition is expected to be funded through internal accruals or existing cash reserves, describing the commitment as manageable at the reported ₹15.84 crore level. On the trading side, the provided snapshot says Deccan Gold Mines’ share price was ₹166.75 on 9 June 2026 at 15:57, showing 0.00% change for the day. Another historical market reference in the text notes the stock jumped 15.85% to ₹102.70 after an earlier announcement about plans to invest in the Spanish tungsten project.

Key facts table

Analysis: why the structure matters for investors

This transaction is structured to tie ownership to capital deployment and exploration progress, rather than paying upfront for full control. The earn-in/option framework allows Deccan Gold to secure a 51% controlling stake while keeping a clear route to 75% through a defined additional investment. The pro-rata funding and dilution provisions matter because exploration projects can require multiple funding rounds, and ownership can shift materially based on participation. The non-dilutable 5% minimum for the existing shareholder is also notable because it fixes a floor for minority interest, even if Deccan Gold becomes the principal funder later. Operationally, the projects are still in exploration, so value creation is linked to drilling, target definition, and regulatory steps rather than near-term production updates. For Deccan Gold, the move extends its stated strategy of pairing gold assets with critical minerals, with tungsten presented as the central strategic commodity.

Conclusion: what to watch next

Deccan Gold Mines has outlined a staged plan to take control of LMSL in Spain, starting with a 51% earn-in for EUR 1.76 million and a potential step-up to 75% through a further EUR 1.0 million investment. The near-term focus is on exploration and development across the Logrosan and Maria license areas, where drilling is already underway and prior intersections have been disclosed for tungsten mineralisation. The timeline for progressive completion runs through March 2027, and the transaction is still subject to regulatory approvals in India, Spain and the UK. The next meaningful checkpoints are updates on approvals, progress of the drilling programme, and any disclosure around milestone achievement linked to the 75% option.