#Canada #Toronto #Trafigura #Denarius Metals #Zancudo

Denarius Metals Increases Funding for Exploration Efforts at Zancudo Project

On June 18, 2026, Denarius Metals Corp. made a significant announcement regarding its Zancudo Project in Colombia. The company revealed that it has successfully upsized its prepayment agreement with Trafigura Pte. Ltd. from $9 million to $16 million, an increase of $7 million to finance ongoing exploration activities and accelerate development efforts at the site.

Denarius has earmarked the additional funds to support the current exploration drilling campaign at Zancudo and develop new infrastructure, including a new portal and a 600-meter ramp at the Las Brisas-Manto Antiguo area. This new access point aims to facilitate the exploitation of newly identified mining fronts, with aspirations to commence operations by mid-2027.

As part of the agreement, Denarius received a cash advance of $3.5 million from Trafigura earlier in the same week, bringing the total amount secured under the facility to $9 million, inclusive of $500,000 of capitalized interest. This financial boost is critical as it allows Denarius to further its efforts in the high-grade gold-silver mining sector.

In prior developments, Denarius entered into a long-term commercial agreement with Trafigura for the sale of 100% of the high-grade gold-silver concentrates generated at Zancudo. This agreement, which commenced in April 2024, reflects a robust collaboration between the two companies and substantially enhances Denarius’s revenue prospects. The revised offtake contract also included provisions for the sale of crushed ore during the initial production phase, prior to the commissioning of their new processing plant.

In early 2026, Denarius made notable progress in its mining operations, successfully shipping 2,162 tonnes of material to a local port for Trafigura. The material graded an impressive average of 11.4 g/t of gold and 222.3 g/t of silver, yielding approximately 795 ounces of gold and 15,457 ounces of silver for the shipments. To date, the company has recorded total payable gold and silver amounts of 1,133 ounces of gold and 13,419 ounces of silver in the first five months of 2026 alone, demonstrating a significant uptick in productivity.

The financing agreement also outlines a repayment structure, with the initial advances of $5 million set to commence repayment over a 26-month period starting July 1, 2026. The third advance of $4 million will follow, with repayment commencing in January 2027 over a 20-month term. The fourth advance, which totals up to $7 million, can be drawn upon by Denarius within a six-month window and will also begin its repayment cycle in early 2027.

In connection with this upsizing, Denarius will issue a total of 3 million common share purchase warrants to Trafigura at an exercise price of CA$1.00 per common share, expiring on December 8, 2028. The warrant issuance is pending approval from Cboe Canada and will come with a statutory hold period of four months.

Denarius Metals remains focused on establishing itself as a leader in precious metals and polymetallic mining operations, with a commitment to maintaining high standards in both production and environmental practices. The Zancudo Project, featuring the historic Independencia mine, is a key asset located approximately 30 km southwest of Medellin in the renowned Cauca Belt of Colombia.

As denarius continues its exploration and mining endeavors, it is poised to capitalize on growing demand for high-quality gold and silver in the global market. Stakeholders can find further details on the company's initiatives, projects, and financial performance by visiting their official site at www.denariusmetals.com or checking their profile on SEDAR+ at www.sedarplus.ca.