Denarius Metals: A Strategic Financial Move

In the ever-evolving landscape of the mining industry, Denarius Metals Corp. has made a bold move that could redefine its future trajectory. On March 20, 2025, the company closed a non-brokered private placement of units, raising approximately CA$6.6 million. This financial maneuver is not just a cash infusion; it's a strategic play that could position Denarius Metals as a formidable player in the polymetallic mining sector.

The private placement involved the issuance of 13,138,000 Units at CA$0.50 per Unit, bringing the total gross proceeds to CA$6,569,000. Each Unit consisted of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one common share at CA$0.60 per share at any time on or before March 20, 2028. This move brought the Company's issued and outstanding common shares to 106,975,066 common shares.



The net proceeds from this offering are earmarked for the advancement of the Company's projects in Spain, including the Lomero and Toral Projects, as well as the Aguablanca Project. The Lomero Project, located on the Spanish side of the prolific copper-rich Iberian Pyrite Belt, is expected to benefit from the proceeds to prepare a preliminary economic assessment (PEA) by mid-2024. Additionally, the Toral Project in Northern Spain is undergoing an updated Mineral Resource estimate incorporating the 2023 drilling results, followed by the preparation of a PEA later in 2024. The Aguablanca Project, which has a Pre-Feasibility Study (PFS) supporting its economic viability, will also receive capital contributions for restart activities and site administration costs.

In Colombia, the Zancudo Project is expected to commence production in the fourth quarter of 2024, and the proceeds from the private placement will support the construction and development activities at this site. The Company is currently carrying out a 10,000 meters drilling program on the Zancudo deposit, which remains open in all directions, indicating significant potential for future growth.

The participation of key insiders and investors in the offering further validates the Company's prospects. Mr. Serafino Iacono, the Executive Chairman, acquired 3,452,000 Units, increasing his beneficial ownership to 22,078,355 common shares, representing approximately 20.64% of the Company's issued and outstanding common shares. Aton Ventures Fund Ltd., a European-based investment fund, acquired 6,500,000 Units, bringing its beneficial ownership to 13,041,385 common shares, representing approximately 12.19% of the Company's issued and outstanding common shares.



The strategic advantages gained from these participations can influence the company's operational decisions by providing the necessary capital to fund projects in Spain, including the advancement of scoping and other studies and site administration costs at its Lomero and Toral Projects, and capital contributions related to certain restart activities and site administration costs at the Aguablanca Project. This financial support can accelerate the company's plans to commence production at the Aguablanca Project in early 2025 and ensure the successful development of the Zancudo Project in Colombia.

In summary, the recent non-brokered private placement has strengthened Denarius Metals' financial position, providing the necessary capital to advance its projects in Colombia and Spain. This financial stability, coupled with the support of key insiders and investors, positions the Company for future growth and success in the mining industry. The strategic alignment and financial backing can position Denarius Metals as a strong player in the polymetallic mining industry, with a robust portfolio of projects and a solid financial foundation.