Denarius raises $6.6 million for projects in Spain
Denarius Metals Corp. [DMET-Cboe CA, DNRSF-OTCQX] has closed a previously announced non-brokered private placement financing that raised $6.6 million. The company said proceeds will be used to finance projects in Spain, including the advancement of scoping and other studies and site administration costs at its Lomero and Toral projects. Part of the proceeds will also be used for capital contributions related to certain restart activities and site administration costs at the Aguablanca project, which is also located in Spain.
The private placement consisted of 13.14 million units priced at 50 cents per unit. Each unit consisted of one common share and one common share purchase warrant, each of which entitles the holder to purchase one common share for 60 cents at any time on or before March 20, 2028. This brings the company’s issued and outstanding common shares to 106.9 million.
On Friday, Denarius shares were up 9.0% or $0.08 to 70 cents. The shares trade in 52-week range of 88 cents and 40 cents.
In connection with the offering, Denarius Executive Chairman Serafino Iacono, acquired 3.4 million units. As a result, Iacono owns and controls 22.08 million common sharesor 20.64% of the issued and outstanding common shares, 900,000 stock options, 7.78 million unlisted warrants, $1.9 million senior unsecured convertible debentures due 2029 and $6.4 million unsecured convertible debentures due 2030. Assuming full exercise of his stock options, unlisted warrants, and senior unsecured convertible debentures, Iacono would have control and direction over 45.7 million common shares, representing 34.9% of the then outstanding common shares on a partially diluted basis.
In addition, Aton Ventures Fund Ltd., a European-based investment fund, acquired 6.5 million units through the offering. As a result, Aton Ventures owns and controls 13.04 million common shares (12.19%) of the issued and outstanding shares, 13.9 million unlisted warrants and $500,000 secure unsecured convertible debentures. Due 2029. Assuming full exercise of unlisted warrants, and senior unsecured convertible debentures, Aton Ventures would control over 28 million common shares or 23.01% of the then outstanding common shares on a partially diluted basis.
The company also expects to commence operations this year 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, approximately a 45- minute drive north of Seville. Aguablanca is one of the only deposits in Spain that is capable of producing both nickel and copper. Denarius holds interest in Aguablanca via a 21% interest in Rio Narcea Recursos S.L. , which owns a 5,000 tonne per day processing plant and has the right to exploit the historic Aguablanca nickel-copper mine. The plant has sufficient excess capacity that is expected to be used to accelerate a path to production from the Lomero and Toral projects.
The Toral zinc-lead-silver project is located in the Province of Leon, Northern Spain.