Denarius aims to raise $15 million in upsized financing

Denarius Metals Corp. [DMET-NEO, DNRSF-OTCQX] has released an update on a previously announced private placement, saying it is upsizing the offering in a bid to raise up to $15 million to cover costs at mining projects in Spain.

In a press release on February 12, 2025, the company said it planned to launch a non-brokered private placement of up to 8.0 million units priced at 56 cents per unit, for gross proceeds of $4.48 million.

In its latest update, the company said it is increasing the placement to 26.8 million units at the same offering price. Each unit will consist of one common share and one common share purchase warrant, each of which will entitle the holder to purchase one common share of the company at a price of 74 cents per common share at any time on or before that date which is 36 months after closing. It is anticipated that the closing of the offering will occur in one or more tranches on or prior to March 12, 2025.

Up to 12.5 million units sold pursuant to the offering (the LIFE Units), representing gross proceeds of $7.0 million, will be offered by way of the “listed issuer financing” exemption under Part 5A under the National Instrument 45-106 – Prospectus Exemptions in all provinces in Canada with the exception of Quebec.

Up to 14.3 million units (the “Non-LIFE Units”) will be sold pursuant to the “accredited investor” exemption under NI 45-106 and Ontario Securities Commission Rule 72-503 – Distributions Outside Canada.

The company said it will grant the agents an option, to purchase for resale up to an additional 4.02 million Non-LIFE Units at the offering price for additional gross proceeds of $2.25 million. The overallotment option is exercisable for up to three business days prior to closing.

Denarius shares were unchanged at 70 cents and trade in a 52-week range of 80 cents and 51 cents.

Denarius recently said it has finalized a prepayment deal with Trafigura Pte. Ltd., a leading global commodities group, under which Denarius will receive US$9.0 million. The funds received from Trafigura will fully fund the completion of construction activity at the Zancudo gold and silver project in Colombia during 2025.

The company also expects to commence operations within the next 12 months at the Aguablanca nickel-copper mine in Spain. Aguablanca is located approximately 88 kilometres northeast of Lomero polymetallic project, which is located on the Spanish side of the Iberian Pyrite belt.

Proceeds from the upsized financing will be used to fund Spanish projects, including, the advancement of scoping and other studies and site administration costs at its Lomero and Toral (lead-silver-zinc) projects, as well as for capital contributions related to certain restart activities and site administration costs at the Aguablanca Project. The Toral project is located approximately 400 kilometres northwest of Madrid in the Province of Leon.