Highlights

• Deccan Gold signed a definitive earn-in agreement for the Logrosan Project.
• The company plans to acquire an initial 51 percent stake by March 2027.
• The Spanish project offers exposure to tungsten and other critical minerals.

Deccan Gold Mines Limited (NSE:DECNGOLD) has signed a definitive Earn-In, Option and Shareholders Agreement for the Logrosan Tungsten Project in Spain, creating a pathway to acquire an initial 51 percent stake in the project by March 2027. The development marks the next phase of the company's involvement in the project after announcing its strategic entry into Logrosan in December 2025.

The agreement forms part of Deccan Gold's efforts to expand its portfolio of gold and critical mineral assets at a time when resource security and supply-chain diversification have become key priorities for governments and industries worldwide.

Source: Analysis by Kalkine 

Investment Plan Outlined Under Agreement

Under the terms of the agreement, Deccan Gold will invest EUR 1.76 million to progressively acquire a 51 percent stake in Logrosan Minera S.L. by March 2027. The company will also have the option to increase its ownership to 75 percent, subject to agreed milestones and independent valuation.

In addition, the agreement provides a framework that could allow Deccan Gold to increase its stake to as much as 95 percent over time through future funding participation and dilution provisions, subject to applicable regulatory approvals.

The phased structure enables the company to expand its ownership based on project advancement and agreed conditions.

Project Offers Exposure to Multiple Minerals

The Logrosan and Maria Projects are located within a highly mineralised region of Spain and together represent a district-scale exploration opportunity. While tungsten remains the primary focus, the project area is also considered prospective for gold, tin, rare earth elements, niobium and tantalum.

The diversification of mineral targets provides exposure to several commodities that are increasingly being classified as strategically important for industrial and technological applications.

Drilling Programmes Identify Tungsten Mineralisation

According to the company, exploration activities conducted by its partners have identified multiple targets through soil sampling, geophysical surveys and drilling campaigns.

At the Logrosan Project, a six-hole diamond drilling programme intersected multiple veins of scheelite, a tungsten-bearing mineral. Reported drill intersections included 3 metres grading 0.42 percent WO₃, 9 metres grading 0.32 percent WO₃ and 2.7 metres grading 0.29 percent WO₃.

A drilling programme currently underway is focused on extending and further defining the mineralised zones. Early exploration results indicate that the Dehesa target may contain additional tungsten mineralisation along with potential gold and rare earth element occurrences.

Tungsten Gains Importance in Global Supply Chains

Tungsten is classified as a critical mineral because of its use across defence, aerospace, semiconductors, electronics, advanced manufacturing and industrial applications. The metal is valued for its hardness, durability and high-temperature resistance.

With China continuing to account for a significant share of global tungsten production and processing, many countries and industries are seeking alternative and diversified sources of supply. This trend has increased interest in tungsten exploration projects located outside dominant producing regions.

Spain's Mining Sector Provides Strategic Location

Spain is regarded as one of Europe's established mining jurisdictions and offers foreign ownership opportunities, mining expertise and supporting infrastructure. The country is also aligned with the European Union's Critical Raw Materials Act, which seeks to strengthen domestic and allied supply chains for strategic minerals.

The location provides access to a mining-friendly environment while positioning projects within a region that is seeking to enhance critical mineral availability.

Management Commentary

Commenting on the development, Dr. Hanuma Prasad Modali, Managing Director, Deccan Gold Mines Limited, said:

“The definitive earn-in agreement for Logrosan marks an important step in Deccan Gold's strategy to build a globally diversified portfolio of gold and critical mineral assets. Beyond tungsten, the project offers exposure to a broader mineralised district with potential across gold, rare earth elements, tin, and other strategic minerals. As resource security and supply-chain resilience become strategic priorities worldwide, access to critical minerals is emerging as a key driver of economic competitiveness and industrial growth. Logrosan strengthens our international critical minerals portfolio and aligns closely with our long-term vision of building a globally relevant mining platform.”

Source: Analysis by Kalkine 

Key Risks

• Exploration targets may not convert into commercial resources.
• Future stake increases depend on milestones and approvals.
• Commodity price volatility could affect project economics.
• Ongoing drilling results may differ from initial findings.

Summary

Deccan Gold Mines Limited (NSE:DECNGOLD) has entered into a definitive earn-in agreement for the Logrosan Tungsten Project in Spain, under which it plans to acquire an initial 51 percent stake by March 2027 through an investment of EUR 1.76 million. The project provides exposure to tungsten, gold, rare earth elements, tin, niobium and tantalum. Ongoing drilling and exploration activities are expected to provide further information regarding the scale and potential of the mineralised zones.

FAQs

Q: What agreement has Deccan Gold signed in Spain?
A: The company signed a definitive earn-in agreement for the Logrosan Tungsten Project.

Q: How much ownership can Deccan Gold initially acquire?
A: The agreement allows Deccan Gold to earn a 51 percent stake by March 2027.

Q: Which minerals are being explored at Logrosan?
A: The project is prospective for tungsten, gold, rare earth elements, tin, niobium and tantalum.