Denarius Metals Takes Step Forward to Produce Low Carbon Metals in Europe with the Signing of a Long-Term Agreement for the Sale of Concentrates from Its Aguablanca Project in Spain; Completes Previously Announced Private Placement of Common Shares
Toronto, Ontario--(Newsfile Corp. - September 5, 2024) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has agreed to commercial terms with Boliden Commercial AB, a subsidiary of Boliden AB ("Boliden"), for the sale at market prices of 100% of the nickel-copper concentrates to be produced at its Aguablanca Project in Extremadura, Spain. The initial term of the agreement covers the period through mid-2031 and is renewable annually thereafter. The concentrates will be shipped from Aguablanca through the Huelva Port to Boliden's state-of-the-art nickel flash smelting facilities located in Harjavalta, Finland, the only nickel sulphide smelter in the European Union. The flash smelting technology was invented and implemented first in Harjavalta and is included on the EU Best Available Technology list. The Harjavalta smelter has some of the lowest carbon and sulphur dioxide emissions of any nickel smelter globally.
Serafino Iacono, Executive Chairman and CEO of Denarius Metals, commented, "We are very pleased to be partnered with a world-class metals company such as Boliden. Our shared vision of producing low-carbon metals within the European Union to support climate transition and modern society was a key factor in our decision to sign a long-term offtake agreement with Boliden. The commercial terms align favorably with our Pre-Feasibility Study published earlier this year for the re-start of our Aguablanca Project, allowing us to generate revenues from the nickel, copper, cobalt, platinum, palladium, gold and silver contained in the Aguablanca deposit. With this agreement now in place, we have established offtake arrangements for our two projects coming into production within the next six to 12 months, Zancudo in Colombia and Aguablanca in Spain."
Non-Brokered Private Placement of Common Shares
Denarius Metals also announced today that it has closed the final tranche of its previously announced non-brokered private placement of common shares for additional gross proceeds of CA$499,999.95. In total, the Company issued 8,473,332 common shares at a price of CA$0.45 per share for aggregate gross proceeds of CA$3,812,999.40. The common shares issued in this private placement are subject to a hold period in Canada ending on the date that is four months plus one day following the respective issuance dates. The Company's issued and outstanding common shares as of the current date is 74,665,084 common shares. The Company intends to use the net proceeds to fund its Aguablanca Project and Zancudo Project in Colombia and for general corporate purposes.
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.
In Spain, the Company 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 50% 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 northwest of the Lomero Project. The Company is also carrying out an exploration campaign on the Toral Project located in the Leon Province, Northern Spain pursuant to an option and joint-venture arrangement with Europa pursuant to which it can acquire up to an 80% ownership interest in Europa Metals Iberia S.L., a wholly-owned Spanish subsidiary of Europa which holds the Toral Project.
In Colombia, Denarius Metals is carrying out construction activities at its 100%-owned Zancudo Project, which includes the historic producing Independencia mine, to develop production and cash flow expected to commence in the fourth quarter of 2024 through local contract mining. The Company is currently carrying out a 10,000 meters drilling program on the Zancudo deposit which remains open in all directions.
Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including the commencement of production at the Zancudo and Aguablanca Projects, the Aguablanca offtake agreement and expected revenues, regulatory and Cboe Canada Inc. approvals of the private placement and intended use of proceeds from the private placement. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated April 25, 2024 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
