Denarius Metals Company (Dammit-Cboy California, DNRSF-OTCQX) announced a $7.0 increase in volume on its previously announced prepaid deal with Trafigura Pte. Ltd., a leading global commodities group aims to fully finance the completion of construction activity on the Zancudo project in Colombia.
The company said that the prepaid deal size has been increased to US$16.0 million from US$9.0 million. The additional financing of up to US$7.0 million will be used to fund the current exploration drilling campaign being undertaken at Zancudo and towards the development of a new gate and 600-metre ramp in the Las Brisas-Manto Antiguo area to open access to new mining fronts at the Zancudo Exploration Project by mid-2027.
The company also announced Thursday that it received $3.5 million in cash this week from Trafigura under the third advance available under the facility. This brings the total financing received by the Company to date under the facility to $9.0 million, including $500,000 of interest capitalized to the principal amount of debt during the initial grace period ending June 30, 2026.
Denarius shares were unchanged at 63 cents Thursday and are trading in a 52-week range of $1.14 and 41 cents.
In April 2024, Denarius signed a long-term commercial agreement with Trafigura to sell at market prices 100% of the high-quality gold and silver concentrates to be produced at Zancudo from its new 1,000 tons 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 until the start of plant operations.
In April and May 2025, mining rates increased, enabling the company to ship 2,162 tons to a local port for sale to Trafigura. With average grades of 11.4 g/t gold and 222.3 g/t silver, these cargoes contained approximately 795 ounces of gold and 15,457 ounces of silver. The total for the first five months of 2026 was 1,133 ounces of gold and 13,419 ounces of silver. In 2025, the payable value of gold and silver is 333 ounces and 5,749 ounces, respectively.
In Colombia, Denarius is producing early-stage gold and silver production at its 100%-owned Zancudo project, while completing construction of a 1,000 t/d processing plant that is expected to begin producing gold and silver concentrates by the third quarter of 2026. Zancudo consists of three adjacent mining concessions and one exploration license covering an area of approximately 1,054 hectares. For Concession 5521, which includes the historic Independencia mine, the technical work plan for mining was approved in December 2023 by the Minister of Mines of Antioquia. The mine is located in the Cauca Belt, about 30 kilometers southwest of Medellin.
The company also expects to begin operations within the next 12 months at its Aguablanca nickel and copper mine in Spain. Aguablanca is located approximately 88 kilometers northeast of the Lumero polymetallic project, which is located on the Spanish side of the Iberian pyrite belt.
