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About Denarius Metals Corp. (OTCQX: DNRSF)
Denarius Metals Corp. is a Canadian junior mining company focused on the acquisition, exploration, development, and operation of high-grade polymetallic mining projects. With a diversified portfolio of assets in Spain and Colombia, Denarius Metals is strategically positioned to capitalize on the growing global demand for critical and precious metals such as gold, silver, nickel, copper, zinc, and lead.
Core Projects and Operations
Zancudo Project, Colombia: Located in the Cauca Belt near Medellin, this high-grade gold-silver deposit includes the historic Independencia Mine. The project is set to commence production in 2025, supported by a 1,000 tonnes per day (tpd) processing plant and a long-term offtake agreement with Trafigura for its high-grade concentrates.
Lomero Project, Spain: Situated in the prolific Iberian Pyrite Belt, this polymetallic deposit contains copper, lead, zinc, gold, and silver. Denarius Metals is advancing a Preliminary Economic Assessment (PEA) to integrate Lomero’s material with processing at the nearby Aguablanca plant.
Toral Project, Spain: A high-grade zinc-lead-silver deposit in Northern Spain, which Denarius Metals fully acquired in 2024. The company is preparing an updated Mineral Resource Estimate (MRE) and a PEA to evaluate its economic viability.
Aguablanca Project, Spain: Denarius Metals holds a 21% interest in this nickel-copper mine and 5,000 tpd processing plant. The plant serves as a strategic hub for processing material from the company’s Spanish projects.
Strategic Partnerships and Financing
Denarius Metals has established strategic partnerships with global commodities groups such as Trafigura and Boliden. These partnerships include long-term offtake agreements and prepayment financing arrangements, which provide liquidity to fund construction and operational activities. The company’s ability to secure such agreements underscores its credibility and commitment to operational excellence.
Competitive Positioning
Operating in highly competitive mining regions, Denarius Metals differentiates itself through its focus on high-grade deposits, efficient use of existing infrastructure, and strategic partnerships. The company’s projects are located in established mining jurisdictions with access to skilled labor, infrastructure, and regulatory frameworks that support mining activities.
Challenges and Opportunities
Denarius Metals faces challenges such as regulatory approvals, financing requirements, and operational scalability. However, its strategic geographic positioning, partnerships, and focus on high-grade resource development provide significant opportunities for growth. The company’s near-term production potential at Zancudo and Aguablanca positions it as a promising player in the global mining industry.
Conclusion
Denarius Metals Corp. is a dynamic junior mining company with a clear focus on high-grade polymetallic resource development. Its strategic approach to leveraging existing infrastructure, securing long-term partnerships, and advancing high-quality projects positions it as a key player in the mining sector. With near-term production expected from its flagship projects, Denarius Metals is poised to generate cash flow to support its long-term growth strategy.
Denarius Metals (DNRSF) has secured a US$9 million prepayment financing agreement with Trafigura to complete construction at its Zancudo Project in 2025. The financing follows an April 2024 commercial agreement where Trafigura will purchase 100% of Zancudo's high-grade gold-silver concentrates for eight years at market prices.
The funding will be disbursed in three tranches, starting with US$2.5 million in the next two weeks, with subsequent advances tied to construction milestones. Repayment, including capitalized interest during a nine-month grace period, will occur over 26 months from production. The facility is secured by Zancudo Project assets.
As part of the agreement, Denarius will issue 3 million warrants to Trafigura, exercisable at CA$0.74 per share until February 7, 2028, subject to a hold period until June 8, 2025, and Cboe Canada's final approval.
Denarius Metals (DNRSF) has sold a 29% stake in Rio Narcea Recursos (RNR) to existing shareholders, reducing its ownership to 21%. This transaction settles the remaining EUR 14.5 million payment obligation from its initial 50% stake acquisition in late 2023. Despite the reduced ownership, Denarius maintains its position as operator of the Aguablanca Project and retains rights to use RNR's 5,000 tonnes per day processing plant for future Lomero and Toral operations.
The company has paid EUR 10.25 million to date and will pay an additional EUR 250,000 this month. The agreement preserves Denarius's right to appoint two board members and includes protective rights in key RNR decisions, along with first refusal rights for future stake increases. The company awaits Water Concession approval to begin dewatering and preparing the underground mine, with operations expected to resume in 2025. A preliminary economic assessment for the Lomero Project is scheduled for Q1 2025.
Denarius Metals (DNRSF) has received approval of its Environmental Impact Study (EIS) for the Zancudo Project from Corantioquia, Colombia's local environmental authority, enabling the commencement of mining operations. The company expects first production by Q1 end, with its 1,000 tonnes per day processing plant operational in Q2 2025.
In the interim, Denarius has arranged to sell mined material to Soma Gold, which owns the El Limon Mill (225 tpd capacity, permitted for 400 tpd). Processing at El Limon Mill is expected to begin by February end, producing high-grade gold-silver concentrates.
The EIS applies to concession 5521, including the historic Independencia Mine, and covers areas under a Plan of Exploration and Exploitation approved in December 2023. The company also announced leadership changes, with Federico Restrepo-Solano assuming the CEO role while Serafino Iacono remains Executive Chairman.
Denarius Metals (DNRSF) has secured holder consent to amend terms of its convertible unsecured debentures. The amendments affect CA$19.25M of 2023 Debentures and CA$13.76M of 2024 Debentures, with consent from 78.95% and 99.02% of holders respectively. Key changes include:
- Delaying Gold Premium Payment commencement by one year for both debenture series
- Extending maturity dates by one year to October 2029 for 2023 Debentures and May 2030 for 2024 Debentures
Consenting holders will receive a 2% fee in additional debentures, totaling 576,460 new debentures, with 168,160 going to key executives. The amendments await final Cboe Canada approval, expected by December 31, 2024.
Denarius Metals (DNRSF) has initiated a consent solicitation process to amend terms of its convertible unsecured debentures worth CA$33.1 million total. The proposed amendments include: delaying Gold Premium Payments by one year (to January 2026 for 2023 debentures and June 2026 for 2024 debentures) and extending maturity dates by one year. The company requires 66 2/3% approval from debenture holders by December 18, 2024. Holders who consent will receive a 2% fee in additional debentures. The changes aim to align funding with cash flow from the Zancudo Project following delays in environmental impact study approval.
Denarius Metals reported its Q3 and nine months 2024 financial results. The company invested $9.5 million in exploration and development, including $7.4 million for the Zancudo Project construction. They raised $17.2 million through various financing activities in the first nine months, plus an additional $3.2 million in October. The company is finalizing a toll milling arrangement at Zancudo while constructing a 1,000 TPD processing plant, expected to be operational in Q1 2025. They reported a net loss of $9.5 million in Q3 2024 ($0.14 per share) and $12.1 million ($0.18 per share) for the nine-month period.
Denarius Metals Corp. (DNRSF) has completed the acquisition of 100% of Europa Metals Iberia S.L. (EMI) from Europa Metals , securing full ownership of the Toral Zn-Pb-Ag Project in Leon Province, Northern Spain. As part of the transaction, Denarius issued 7,000,000 common shares to Europa, subject to a hold period until March 13, 2025. Europa also assigned to Denarius its receivable for amounts advanced to EMI, totaling approximately EUR 3.7 million. The previous Option and Loan Agreements from November 22, 2022, between the parties have been terminated.
Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) announced that its Executive Chairman and CEO, Serafino Iacono, has exercised 3,000,000 common share purchase warrants at CA$0.60 per share, generating CA$1.8 million in gross cash proceeds for the company. This exercise increased Mr. Iacono's beneficial ownership to approximately 20.5% of the company's issued and outstanding common shares, up from 17.3% previously.
Mr. Iacono stated that this move reaffirms his confidence in Denarius Metals' portfolio of high-grade mining projects in Spain and Colombia, which are expected to begin production within the next 6 to 12 months. The company aims to create an internal source of cash flow from its Zancudo and Aguablanca Projects to support long-term growth.
Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) has signed a binding LOI to acquire 100% of Europa Metals Iberia S.L., which holds the Toral Zn-Pb-Ag Project in Northern Spain. The transaction, expected to close by October 31, 2024, aligns with Denarius' vision of producing low-carbon metals within the EU. The purchase price includes funds already advanced (US$3.1 million) and an additional CA$3.5 million in Denarius shares.
Key points:
- Acquisition strengthens Denarius' liquidity and flexibility in project development
- Denarius plans to update the Mineral Resource estimate and conduct a preliminary economic assessment
- The company has completed a 6,200-meter drilling campaign at Toral
- A formal mining license application has been filed
Denarius Metals Corp. (DNRSF) has announced high-grade gold and silver results from its ongoing infill drilling program at the Zancudo Project in Colombia. The program, designed to upgrade Inferred Resources to the Indicated category, has yielded significant intersections at the Los Albertos target, including:
- 22.37 g/t Au and 2,752 g/t Ag over 0.40 m (Manto Antiguo)
- 53.51 g/t Au and 154 g/t Ag over 0.40 m (Ortiz Vein System)
- 37.60 g/t Au and 1,190 g/t Ag over 0.40 m (Ortiz B Vein)
The results confirm high-grade mineralization on multiple structures and have delineated a NW-SE trending ore-shoot on the main Manto Antiguo structure, which remains open along strike and to the west. The drilling program, which began in April 2024, is expected to be completed in Q4 2024.
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