Denarius Metals Announces Details for the June 30, 2025 Interest Payments on Its Convertible Unsecured Debentures

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Denarius Metals announced details for interest payments on its convertible unsecured debentures due June 30, 2025. Following recent amendments to trust indentures, the company will issue common shares instead of cash for monthly interest payments from June 30, 2025 to May 31, 2026. The company has CA$19.89M in debentures due October 2029 and CA$14.29M due May 2030. Based on the June 13 closing price of CA$0.60 per share, a maximum of 563,140 common shares will be issued to settle CA$337,885 in interest payments. Company executives, including Executive Chairman Serafino Iacono and CEO Federico Restrepo-Solano, will receive 144,068 shares for their debenture holdings.

Positive

• Company preserves cash by paying interest in shares instead of cash
• Amendment of trust indentures shows successful negotiation with debenture holders

Negative

• Issuance of shares for interest payments indicates potential cash flow constraints
• Share issuance will cause dilution for existing shareholders
• Consent Fee Debentures are subject to a four-month hold period

Toronto, Ontario--(Newsfile Corp. - June 19, 2025) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today the details for the forthcoming interest payments on its convertible unsecured debentures on June 30, 2025. Pursuant to the recently completed consent solicitation process, the trust indentures for its debentures were amended on June 18, 2025 (the "Third Supplemental Indentures") to allow the Company to issue common shares rather than using cash to settle the monthly interest payments on the debentures from June 30, 2025 to May 31, 2026, inclusive. As of today's date, the Company has an aggregate principal amount of CA$19,886,560 of debentures due October 19, 2029 (the "2023 Debentures") and an aggregate principal amount of CA$14,287,914 of debentures due May 30, 2030 (the "2024 Debentures") issued and outstanding.

The table below summarizes the details for the shares to be issued to holders of the 2023 Debentures and 2024 Debentures on June 30, 2025 in settlement of the monthly interest due on that date:

		Principal Amount of Debentures (1) (CA$)			Maximum  Interest (2) (CA$)			Maximum Number of Shares to  be Issued (3)			Number of Shares per CA$1.00 of Principal
2023 Debentures
Total before the following		19,521,000			195,210			325,350			0.016667
Consent Fee Debentures (4)		365,560			1,444			2,406			0.006582
Total issued & outstanding		19,886,560			196,654			327,756
2024 Debentures
Issued & outstanding		14,015,460			140,155			233,591			0.016667
Consent Fee Debentures (4)		272,454			1,076			1,793			0.006582
Total issued & outstanding		14,287,914			141,231			235,384
Total		34,174,474			337,885			563,140
(1) Issued and outstanding as of June 19, 2025. (2) Assuming no conversions of debentures between today's date and June 30, 2025. (3) Based on the closing price of the common shares on Cboe CA of CA$0.60 per share on June 13, 2025, the Monthly Measurement Date pursuant to the Third Supplemental Indentures. (4) The Consent Fee Debentures were issued on June 18, 2025 pursuant to the consent solicitation process. As stipulated in the Third Supplemental Indentures, the interest payments for the period from the date of issue to but excluding June 30, 2025 are equal to CA$0.00395 for each CA$1.00 principal amount of debentures.

 

The actual number of common shares to be issued will be determined based on the aggregate principal amount of the debentures issued and outstanding on the record date and will not exceed the maximum number issuable as shown in the table above. The issuance of the common shares in settlement of the interest payable on the debentures on June 30, 2025 is subject to the acceptance of Cboe Canada. The Consent Fee Debentures are currently subject to a statutory four month hold period, and as such, the common shares to be issued in settlement of the interest thereon will be subject to the same hold period.

Mr. Serafino Iacono (Executive Chairman), Mr. Federico Restrepo-Solano (Director and CEO), Mr. Michael Davies (Chief Financial Officer) and Ms. Amanda Fullerton (General Counsel and Secretary) will receive an aggregate of 144,068 common shares in settlement of the interest payable on their respective holdings of 2023 Debentures and 2024 Debentures.

About Denarius Metals

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada where it trades under the symbol "DMET". The Company also trades on the OTCQX Market in the United States under the symbol "DNRSF".

In Colombia, Denarius Metals recently commenced mining operations at its 100%-owned Zancudo Project, a high-grade gold-silver deposit, which includes the historic producing Independencia mine, located in the Cauca Belt, about 30 km southwest of Medellin.

In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a 21% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has recently been recognized by the EU as a Strategic Project. The Aguablanca Project comprises a turnkey 5,000 tonnes per day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, approximately 88 km southwest of the Aguablanca Project, and a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.

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 acceptance of the share issuance. 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 March 31, 2025 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/256208

FAQ

How much interest is Denarius Metals (DNRSF) paying on its debentures for June 30, 2025?

Denarius Metals is paying CA$337,885 in total interest, with CA$196,654 for 2023 Debentures and CA$141,231 for 2024 Debentures.

How many shares will Denarius Metals issue for the June 2025 interest payment?

Denarius Metals will issue a maximum of 563,140 common shares, based on the closing price of CA$0.60 per share on June 13, 2025.

What is the total value of Denarius Metals' outstanding debentures?

The total value of outstanding debentures is CA$34,174,474, comprising CA$19,886,560 due in 2029 and CA$14,287,914 due in 2030.

How long will Denarius Metals pay interest in shares instead of cash?

Denarius Metals will pay interest in shares from June 30, 2025 to May 31, 2026, as per the amended trust indentures.

How many shares will Denarius Metals executives receive for their debenture interest?

Company executives, including the Executive Chairman and CEO, will receive an aggregate of 144,068 common shares for their debenture holdings.