Denarius Metals Announces Consent Solicitation Process to Amend the Terms of Its Convertible Unsecured Debentures to Strengthen Liquidity During the First 12 Months of the Ramp-up of Mining Operations

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Jun 02, 2025
  • Denarius Metals (DNRSF, Financial) launches consent solicitation to amend CA$33.5M convertible debentures' terms.
  • Proposed changes aim to strengthen liquidity during Zancudo Project's ramp-up in Colombia.
  • Consent from 66.67% of debenture holders needed by June 13, 2025, with a 2% consent fee offered.

Denarius Metals Corp. (DNRSF) has initiated a consent solicitation process to amend the terms of its convertible unsecured debentures, totaling CA$33.5 million. The company's goal is to bolster liquidity as mining operations at its Zancudo Project in Colombia ramp up. Key proposed amendments include the ability to issue shares instead of cash for monthly interest payments from June 2025 to May 2026, and introducing a cap of US$4,000 per ounce on the gold price for premium payments.

The approval of at least 66.67% of debenture holders is required by June 13, 2025, for these amendments to take effect. Holders who consent will receive a 2% fee in the form of additional debentures.

The Zancudo Project commenced operations in April 2025, with the first ore shipment to Trafigura expected in June. The project targets a production rate of 500 tonnes per day by early 2026. Denarius Metals aims to preserve cash during this critical ramp-up phase by settling obligations with shares, thereby maintaining financial stability.

The alterations to the debentures require Cboe Canada's approval and are intended to manage the financial impact of the debentures while offering superior returns to holders through equity conversion options.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.