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Toronto, Ontario--(Newsfile Corp. - February 10, 2025) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has finalized a prepayment agreement (the "Facility") with Trafigura Pte. Ltd. ("Trafigura"), a leading global commodities group, pursuant to which the Company will receive up to US$9,000,000 from Trafigura that will fully fund the completion of the construction activities at its Zancudo Project in 2025. In April 2024, the Company signed a commercial agreement with Trafigura for the sale at market prices of 100% of the high-grade gold-silver concentrates to be produced at Zancudo over the next eight years.
The Company expects to receive the first advance of US$2,500,000 in the next two weeks and will receive the balance of the proceeds in two further advances that will be funded as the Company reaches prescribed milestones during the completion of the construction activities. The advances, together with interest capitalized during a nine-month period following the date of the first advance (the "Grace Period"), will be repaid, with interest, from production during the 26 months following the Grace Period. The Facility is secured by certain assets of the Company related to its Zancudo Project.
In conjunction with the execution of the Facility, the Company has agreed to issue a total of 3,000,000 common share purchase warrants to Trafigura with an exercise price of CA$0.74 per common share that will expire on February 7, 2028. The Trafigura warrants are subject to a hold period expiring June 8, 2025. The issuance of the Trafigura warrants is also subject to the final approval of Cboe Canada.
About Denarius Metals
Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of polymetallic mining projects in high-grade districts. Denarius Metals is commencing production from its Zancudo Project in Colombia in the first quarter of 2025 and expects to commence operations in the next 12 months at the Aguablanca Project in Spain.
In Spain, Denarius Metals owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, and a 21% interest in Rio Narcea Recursos, S.L., which owns a 5,000 tonnes per day processing plant and has the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura, Spain, approximately 88 km northeast of the Lomero Project. Denarius Metals also owns a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.