Denarius Metals Corp. (Cboe Canada: DMET, OTCQX: DNRSF) is advancing its mining portfolio with important milestones that set the stage for growth in 2025. The company recently obtained all necessary permits to restart operations at its Aguablanca Project in Spain, while also ramping up mining activities at its Zancudo Project in Colombia.
Denarius Metals received approval for a 20-year water concession for the Aguablanca Project, located in Monesterio, Extremadura, Spain. This permit clears the final regulatory step needed to begin de-watering the underground mine and resume operations. The concession follows the European Commission’s March 2025 designation of Aguablanca as one of 47 “Strategic Projects” under the Critical Raw Materials Act, highlighting its importance to the European Union’s resource security.
With this permit in hand, Denarius Metals, as operator, is arranging project financing through Rio Narcea Recursos, S.L. (RNR), the project’s owner. Funding will cover capital expenditures for plant refurbishment, de-watering, site administration, and initial working capital. The de-watering process is expected to take six to nine months, after which contract mining operations can begin. Plant refurbishment will proceed simultaneously, positioning Aguablanca to become the company’s second mine in operation within the next year.
In Colombia, Denarius Metals started mining operations at its 100%-owned Zancudo Project in April 2025. During the early production phase, mined material is crushed onsite and shipped to Trafigura Pte. Ltd. for sale. The project’s 1,000 tonnes-per-day processing plant is expected to be operational by the fourth quarter of 2025, with first production anticipated in the second quarter.
To fund construction completion, Denarius Metals leveraged its offtake agreement with Trafigura, securing a prepayment facility. The company received $2.5 million in the first quarter of 2025 and expects up to an additional $6.5 million as construction milestones are met.
Exploration continues to support Zancudo’s potential. A late 2024 drilling campaign at the Las Brisas target confirmed high-grade ore shoots and identified a new mineralized vein. These results will be incorporated into an updated mineral resource estimate expected in the third quarter of 2025.
Denarius Metals raised approximately $3.4 million through a private placement in March 2025 and settled $1.1 million in related party bridge loans. As of March 31, 2025, the company held $3.1 million in cash, up from $1.1 million at the end of 2024.
Additionally, Denarius Metals signed a binding letter of intent with Quimbaya Gold Inc. to form a 50/50 joint venture focused on small-scale mining operations within Quimbaya’s Tahami Project in Colombia’s Segovia Gold District. The parties are working toward a definitive agreement, pending regulatory and corporate approvals.
The company reported a net loss of $4.2 million ($0.04 per share) in the first quarter of 2025, an improvement from the $11.1 million ($0.18 per share) loss in the same period last year. The reduced loss reflects lower non-cash charges related to convertible debentures and the absence of one-time acquisition-related expenses incurred in 2024.
Denarius Metals is on track to bring Aguablanca back into production and expand output at Zancudo. With secured financing, supportive offtake agreements, and new partnerships, the company’s focus on critical and precious metals in strategic jurisdictions remains strong.
