DENARIUS METALS ANNOUNCES US$7 MILLION UPSIZING OF ITS PREPAYMENT FACILITY WITH TRAFIGURA TO FUND EXPLORATION AND THE ACCELERATION OF DEVELOPMENT ACTIVITIES AT ITS ZANCUDO PROJECT

Rhea-AI Summary

Denarius Metals (OTCQX: DNRSF) increased its prepayment facility with Trafigura from US$9M to US$16M. Up to US$7M in new funding will support exploration drilling and a new portal and 600 m ramp at the Zancudo Project, targeting new mining fronts by mid-2027.

The company received US$3.5M as a Third Advance, bringing total financing drawn, including capitalized interest, to US$9M. Denarius Metals will issue 3,000,000 warrants at CA$1.00, expiring December 8, 2028, subject to Cboe Canada approval.

Positive

• Prepayment facility increased from US$9M to US$16M, adding US$7M in financing capacity
• Received US$3.5M Third Advance, bringing total drawn (including interest) to US$9M
• Funding earmarked for Zancudo exploration and development of a new portal and 600 m ramp
• Long-term Trafigura offtake for 100% of high-grade gold-silver concentrates and early crushed ore
• Shipped 2,162 tonnes with grades of 11.4 g/t gold and 222.3 g/t silver in April–May 2026
• Total 2026 payable production to May: 1,133 oz gold and 13,419 oz silver

Negative

• Total prepayment debt balance increased to US$16M, to be repaid from production with interest
• First and Second Advances of US$5M require 26-month repayment starting July 1, 2026
• Third Advance of US$4M and up to US$7M Fourth Advance repaid over 20 months from January 1, 2027
• Issuance of 3,000,000 warrants at CA$1.00 could dilute existing shareholders if exercised

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TORONTO, June 18, 2026 /PRNewswire/ - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has upsized its prepayment agreement dated February 7, 2025 (the "Facility") with Trafigura Pte. Ltd. ("Trafigura") from US$9,000,000 to US$16,000,000. The additional financing of up to US$7,000,000 will be used by the Company to fund the current exploration drilling campaign being carried out at the Zancudo Project and toward the development of a new portal and 600 m ramp at the Las Brisas-Manto Antiguo area to open access to new mining fronts in the Zancudo Project for exploitation by mid-2027.

The Company also announced today that it received US$3,500,000 in cash this week from Trafigura pursuant to the Third Advance available under the Facility. This brings the total financing that the Company has received to date under the Facility to US$9,000,000, including US$500,000 of interest that has been capitalized to the principal amount of the debt during the initial Grace Period ending June 30, 2026.

In April 2024, the Company signed a long-term commercial agreement with Trafigura for sale at market prices of 100% of the high-grade gold-silver concentrates to be produced at Zancudo from its new 1,000 tonnes per day processing plant. In 2025, this offtake contract was amended to include the sale of crushed ore from Zancudo to Trafigura during the early production period up to the commencement of the plant operations. In April and May 2026, mining rates have progressed, enabling the Company to ship a total of 2,162 tonnes to a local port for sale to Trafigura. With grades averaging 11.4 g/t gold and 222.3 g/t silver, these shipments contained approximately 795 ounces of gold and 15,457 ounces of silver. Payable gold and silver for the first two months of the second quarter of 2026 amounted to 540 ounces and 5,580 ounces, respectively. In the first quarter of 2026, payable gold and silver was 593 ounces and 7,839 ounces, respectively. This brings the total for the first five months of 2026 to 1,133 payable ounces of gold and 13,419 payable ounces of silver. In 2025, payable gold and silver amounted to 333 ounces and 5,749 ounces, respectively.

The First and Second Advances under the Facility totaling US$5,000,000 will begin to be repaid, with interest, from production over a 26-month period commencing July 1, 2026.

The aggregate amount of the Third Advance of US$4,000,000 will begin to be repaid, with interest, from production over a 20-month period commencing January 1, 2027.

The Fourth Advance of up to US$7,000,000 may be drawn at the Company's request in one or more tranches over the six months ending December 31, 2026 and will begin to be repaid, with interest, from production over a 20-month period commencing January 1, 2027. The amount available under the Fourth Advance is inclusive of interest capitalized on the Third and Fourth Advances during the period from July 1, 2026 to December 31, 2026.

In conjunction with the execution of the upsizing of the Facility, the Company has agreed to issue a total of 3,000,000 common share purchase warrants to Trafigura with an exercise price of CA$1.00 per common share that will expire on December 8, 2028. The Trafigura warrants are subject to a statutory four-month hold period and their issuance is subject to the final approval of Cboe Canada.

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 is producing gold and silver in an "early production" phase at its 100%-owned Zancudo Project while it completes construction of a 1,000 tonnes per day processing plant that is expected to start producing high-grade gold-silver concentrates by the third quarter of 2026. The Zancudo Project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is 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 21.8% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has 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 the receipt of approval for the Trafigura warrants from Cboe Canada. 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, 2026 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.

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SOURCE Denarius Metals Corp.

FAQ

What did Denarius Metals (DNRSF) announce about the Trafigura prepayment facility on June 18, 2026?

Denarius Metals announced an increase of its Trafigura prepayment facility from US$9 million to US$16 million. According to Denarius Metals, the additional US$7 million capacity will support exploration drilling and development activities at the Zancudo Project, including a new portal and 600 m ramp.

How will Denarius Metals use the upsized US$16 million facility at the Zancudo Project?

The upsized facility will fund exploration and accelerate development at Zancudo. According to Denarius Metals, new funds support the current drilling campaign and construction of a new portal and 600 m ramp at Las Brisas-Manto Antiguo to open new mining fronts by mid-2027.

What are the repayment terms for Denarius Metals’ prepayment advances to Trafigura?

Repayment will be made from production over defined periods with interest. According to Denarius Metals, US$5 million of First and Second Advances are repaid over 26 months from July 1, 2026, while the US$4 million Third and up to US$7 million Fourth Advances are repaid over 20 months from January 1, 2027.

What production and sales has Denarius Metals reported from Zancudo in early 2026?

Denarius Metals reported shipments of 2,162 tonnes of ore to Trafigura in April–May 2026. According to Denarius Metals, these averaged 11.4 g/t gold and 222.3 g/t silver, yielding 1,133 payable ounces of gold and 13,419 payable ounces of silver in the first five months of 2026.

What is the impact of the 3,000,000 Trafigura warrants on Denarius Metals (DNRSF) shareholders?

Denarius Metals will issue 3,000,000 share purchase warrants to Trafigura at CA$1.00 per share. According to Denarius Metals, these warrants expire December 8, 2028 and are subject to Cboe Canada approval, potentially increasing the share count if exercised in the future.

What offtake arrangements does Denarius Metals have with Trafigura for Zancudo production?

Denarius Metals has a long-term offtake agreement with Trafigura for Zancudo output. According to Denarius Metals, Trafigura will purchase 100% of high-grade gold-silver concentrates and, under a 2025 amendment, crushed ore during early production before the 1,000 tpd plant starts.