Denarius unveils US$7.0 million upsizing of prepayment facility
Denarius Metals Corp. [DMET-Cboe CA, DNRSF-OTCQX] has announced a US$7.0 upsizing of a previously announced prepayment deal with Trafigura Pte. Ltd., a leading global commodities group designed to fully fund the completion of construction activity at the Zancudo project in Colombia.
The company said the prepayment deal has been upsized to US$16 million from US$9.0 million. The additional financing of up to US$7.0 million will be used to fund the current exploration drill campaign being carried out at Zancudo and toward the development of a new portal and 600-metre ramp at the Las Brisas-Manto Antiguo area to open access to new mining fronts at the Zancudo project for exploration by mid-2027.
The company also announced Thursday that it received US$3.5 million in cash this week from Trafigura pursuant to the Third Advance available under the facility. This brings the total financing that the company has received to date under the facility to US$9.0 million, including US$500,000 of interest that has been capitalized to the principal amount of the debt during the initial Grace Period ending June 30, 2026.
Denarius shares were unchanged at 63 cents on Thursday and trade in a 52-week range of $1.14 and 41 cents.
In April, 2024, Denarius signed a long-term commercial agreement with Trafigura for sale at market prices of 100% of the high-grade gold-silver concentrates to be produced at Zancudo from its new 1,000 tonnes per day processing plant. In 2025, the offtake contract was amended to include the sale of crushed ore from Zancudo to Trafigura during the early production period up to the commencement of plant operations.
In April and May 2025, mining rates have progressed, enabling the company to ship 2,162 tonnes to a local port for sale to Trafigura. With grades averaging 11.4 g/t gold and 222.3 g/t silver, these shipments contained approximately 795 ounces of gold and 15,457 ounces of silver. The total for the first five months of 2026 was 1,133 payable ounces of gold and 13,419 payable ounces of silver. In 2025, payable gold and silver amounted to 333 ounces and 5,749 ounces respectively.
In Colombia, Denarius is producing gold and silver in an early production phase at its 100%-owned Zancudo project, while it completes construction of a 1,000 tonnes per day processing plant that is expected to start producing gold and silver concentrate by the third quarter of 2026. Zancudo consists of three adjoining mining concession contracts and one exploration license covering an area of approximately 1,054 hectares. For concession 5521, which includes the historic Independencia Mine, the Mining Technical Work Plan was approved in December, 2023 by the Secretary of Mines of Antioquia. The mine is located in the Cauca Belt, about 30 kilometres southwest of Medellin.
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.