Denarius Metals Corp. (Cboe CA: DMET, OTCQX: DNRSF), a Canadian junior mining company, has finalized a prepayment financing agreement with Trafigura Pte. Ltd., a global commodities leader. The $9 million facility will fully fund the completion of construction activities at Denarius’ Zancudo Project in Colombia, positioning the company to commence production in 2025.
Under the terms of the agreement, Denarius Metals will receive an initial advance of $2.5 million within two weeks, with the remaining funds disbursed in two additional tranches tied to specific construction milestones. The financing will be repaid over 26 months following a nine-month grace period after the first advance, using proceeds from production at Zancudo. The facility is secured by assets related to the project.
In addition to funding, Trafigura will receive 3 million common share purchase warrants from Denarius Metals. These warrants, priced at CA$0.74 per share, will expire on February 7, 2028, and are subject to regulatory approval and a hold period until June 8, 2025.
This financing builds on a long-term commercial agreement signed in April 2024 between Denarius Metals and Trafigura. Under that deal, Trafigura committed to purchasing 100% of the high-grade gold-silver concentrate produced at Zancudo over an eight-year period at market prices. The partnership underscores Trafigura’s confidence in the project’s viability and aligns with Denarius’ strategy to secure reliable revenue streams as it transitions into production.
The Zancudo Project is a high-grade gold-silver deposit located in Colombia’s Cauca Belt, approximately 30 kilometers southwest of Medellín. It includes the historic Independencia mine and represents a key component of Denarius Metals’ growth strategy. Construction activities are on track for completion this year, with production slated to begin in the first quarter of 2025.
Denarius has also been advancing exploration efforts at Zancudo. A 10,000-meter infill drilling program launched in early 2024 aims to upgrade inferred resources to indicated status and guide mine development. The company is optimistic about increasing its resource base by adjusting cut-off grades to reflect favorable trends in gold and silver prices.
Beyond Zancudo, Denarius Metals holds interests in several other polymetallic projects across Spain and Colombia. In Spain, its portfolio includes the Lomero Project on the Iberian Pyrite Belt and a stake in Rio Narcea Recursos S.L., which operates a processing plant near the Aguablanca nickel-copper mine. Additionally, Denarius owns the Toral zinc-lead-silver deposit in northern Spain.
With its diversified portfolio and strong partnerships like that with Trafigura, Denarius Metals is positioned to emerge as a significant player in high-grade polymetallic mining districts globally. The successful finalization of this financing marks another critical step toward achieving its production goals for 2025.
