Denarius Metals Strengthens Operational Leadership as It Advances Two Projects Toward Production; Announces Non-Brokered Private Placement of up to CA$10 Million of Common Shares
Toronto, Ontario--(Newsfile Corp. - August 1, 2024) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has taken steps to strengthen its operational leadership as it advances its Zancudo Project in Colombia and its Aguablanca Project in Spain toward the commencement of production. Effective immediately, Mr. Federico Restrepo-Solano, a director of the Board since October 2022, has been appointed as the Company's Chief Operating Officer ("COO") and Mr. Mateo Restrepo Villegas, a director of the Board since January 2024, has been appointed as President, Zancudo Metals, a wholly-owned subsidiary of Denarius Metals operating in Colombia.
Messrs. Restrepo-Solano and Restrepo Villegas will both maintain their positions on the Company's Board of Directors. Mr. Francisco Sole has been appointed to the Audit Committee to replace Mr. Restrepo Villegas. The Company's Audit Committee comprises Mr. Paul Sparkes (Chair), Ms. Patricia Herrera Paba and Mr. Sole, all independent directors of the Company.
Serafino Iacono, Executive Chairman and CEO of Denarius Metals, commented, "In anticipation of receiving our pending permits, we believe that the level of activity to prepare the Zancudo and Aguablanca Projects to commence production within the next 6 to 12 months will require an increased level of operational leadership. We are very fortunate to have two well qualified individuals on our Board who are familiar with our projects and committed to taking on enhanced roles to ensure we deliver on our strategy. Mr. Federico Restrepo-Solano has a proven track record bringing projects into operation and will focus primarily on the Company's projects in Spain, notably the restart of the Aguablanca Project. Mr. Mateo Restrepo Villegas, in his previous capacity as President of Continental Gold Inc., guided the large-scale underground Buritica gold mining project into operation, leading the environmental licensing process and developing its ESG strategy. Mr. Restrepo Villegas will focus his efforts to do the same with the Company's Zancudo Project."
Non-Brokered Private Placement
Denarius Metals also announced today that plans to complete a non-brokered private placement of up to 22,222,222 common shares of the Company at a price of CA$0.45 per common share for gross proceeds of up to CA$10,000,000 (the "Offering"). It is anticipated that the closing of the Offering will occur in one or more tranches on or prior to September 5, 2024. Completion of the Offering is subject to shareholders and regulatory approvals, including Cboe Canada. The common shares issuable in connection with this Offering will be subject to a hold period expiring four months and one day after the date of issuance.
The Company intends to use the net proceeds of the Offering, together with the net proceeds from its recent convertible debenture units offering, to fund its Aguablanca Project in Spain, its Zancudo Project in Colombia and for general corporate purposes.
Certain insiders of the Company have indicated their interest to participate in the Offering. As the number of securities issuable to Related Persons (as defined under Cboe Canada's policies) of the Company in the Offering, when added to the number of securities issued to Related Persons of the Company in the private placements of convertible debentures completed in October 2023 and June 2024, is more than 10% of the current total number of issued and outstanding common shares (the "Outstanding Shares"), calculated on a non-diluted basis, the Company requires approval from shareholders representing a majority of the Outstanding Shares held by disinterested shareholders to proceed with the Offering. The Company intends to satisfy Cboe Canada's shareholder approval requirement by obtaining a written resolution signed by holders of at least 50% of the holders entitled to vote thereon.
No U.S. Offering or Registration
This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities in any jurisdiction, including the United States, other than the provinces and territories of Canada. The securities being offered pursuant to the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), or the securities laws of any state of the United States. Such securities may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. Person (as defined in Regulation S of the US Securities Act) or person in the United States except in a transaction exempt from or not subject to the registration requirements of the US Securities Act and applicable state securities laws.
About Denarius Metals
Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of polymetallic mining projects in high-grade districts.
In Spain, the Company owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, and a 50% interest in Rio Narcea Recursos, S.L., which has the rights to exploit the historic producing Aguablanca nickel-copper mine, including a 5,000 tpd processing plant, located in Monesterio, Extremadura, Spain, approximately 88 km northwest from the Lomero Project. The Company is also carrying out an exploration campaign on the Toral Project located in the Leon Province, Northern Spain pursuant to an option and joint-venture arrangement with Europa Metals Ltd. pursuant to which it can acquire up to an 80% ownership interest in Europa Metals Iberia S.L., a wholly-owned Spanish subsidiary of Europa which holds the Toral Project.
In Colombia, Denarius Metals is carrying out construction activities at its 100%-owned Zancudo Project, which includes the historic producing Independencia mine, to develop production and cash flow commencing later this year through local contract mining. The Company is also carrying out a drilling program on the Zancudo deposit which remains open in all directions.
Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including the Offering, shareholders, regulatory and Cboe Canada approvals, and the use of proceeds of the Offering. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated April 25, 2024 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
For Further Information, Contact:
Michael Davies Chief Financial Officer (416) 360-4653 [email protected]
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