Denarius Metals Announces Consent from Holders to Amend Terms of Its Convertible Unsecured Debentures
Rhea-AI Summary
Denarius Metals (DNRSF) has secured holder consent to amend terms of its convertible unsecured debentures. The amendments affect CA$19.25M of 2023 Debentures and CA$13.76M of 2024 Debentures, with consent from 78.95% and 99.02% of holders respectively. Key changes include:
- Delaying Gold Premium Payment commencement by one year for both debenture series
- Extending maturity dates by one year to October 2029 for 2023 Debentures and May 2030 for 2024 Debentures
Consenting holders will receive a 2% fee in additional debentures, totaling 576,460 new debentures, with 168,160 going to key executives. The amendments await final Cboe Canada approval, expected by December 31, 2024.
Positive
- High consent rates obtained (78.95% and 99.02%) indicating strong holder support
- One-year extension of maturity dates provides additional financial flexibility
- Delayed Gold Premium Payment requirements improve short-term cash flow management
Negative
- Additional debentures issued as consent fees (576,460) increase debt obligations
- Extended maturity dates lengthen debt exposure period
- Significant portion of consent fees (168,160) allocated to company executives
News Market Reaction – DNRSF
In the trading session that priced this news, DNRSF gained 11.33%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - December 20, 2024) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has received the required consents from holders to approve certain amendments (the "Amendments") to the trust indentures for its convertible unsecured debentures. The Company has an aggregate principal amount of CA
Holders representing
2023 Indenture:
- delaying the commencement of the Gold Premium Payment (as defined in the 2023 Indenture) from January 31, 2025 to January 31, 2026; and
- extending the Maturity Date (as defined in the 2023 Indenture) of the 2023 Debentures from October 19, 2028 to October 19, 2029.
2024 Indenture:
- delaying the commencement of the Gold Premium Payment (as defined in the 2024 Indenture) from June 30, 2025 to June 30, 2026; and
- extending the Maturity Date (as defined in the 2024 Indenture) of the 2024 Debentures from May 30, 2029 to May 30, 2030.
To make the Amendments, the Company required the written consent of the holders of at least 66 2/
Holders of the debentures who responded to the solicitation and consented to the Amendments will receive a consent fee on or about December 31, 2024 equal to two percent (
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. Denarius Metals has two mines expected to be in operation in the next 12 months, the Zancudo Project in Colombia and the Aguablanca Project in Spain.
In Spain, Denarius Metals owns a
In Colombia, Denarius Metals is carrying out construction activities at its
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 Cboe Canada final approval, finalization of the consent solicitation process, amendments to the 2023 Indenture and 2024 Indenture and issuance of debentures as a consent fee. 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
investors@denariusmetals.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234612