Denarius Metals Receives Approval of Final Permit at Its Zancudo Project in Colombia and Is Commencing Construction of Its 1,000 Tonnes per Day Processing Plant to Begin Operations in Second Quarter of 2026

Rhea-AI Summary

Denarius Metals (OTCQX: DNRSF) received a 30-year Industrial Facility Permit for its Zancudo Project, enabling construction of a 1,000 tonnes per day processing plant expected to begin operations before the end of Q2 2026.

The permit triggers a US$2.5M second advance under a US$9.0M Trafigura prepayment facility. Early production began April 2025: ~1,200 tonnes mined, 878 tonnes shipped with average grades of 7.3 g/t Au and 164.5 g/t Ag (≈207 oz Au, 4,641 oz Ag contained); payments received covered ~126 oz Au and 1,694 oz Ag to Sept 2025. Concentrates will be sold to Trafigura with higher future payability rates.

Positive

• Industrial Facility Permit approved for 30 years
• 1,000 tpd processing plant construction commencing
• Plant expected online before end of Q2 2026
• US$2.5M second advance under a US$9.0M prepayment
• Early production shipped 878 tonnes through Sept 2025
• Shipments averaged 7.3 g/t Au and 164.5 g/t Ag

Negative

• Early-payability rates for shipped material only 55–70% Au, 30–40% Ag
• Payments received covered ~126 of 207 oz Au contained
• Project funding and sales reliant on a single offtaker, Trafigura

News Market Reaction

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+0.29% News Effect

On the day this news was published, DNRSF gained 0.29%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - October 20, 2025) - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has received approval of the Industrial Facility Permit for its Zancudo Project from Corantioquia, the local environmental authority in Colombia. With the approval of the Industrial Facility Permit, which has a term of 30 years, the Company is now able to commence construction of its 1,000 tonnes per day processing plant that is expected to start producing high-grade gold-silver concentrates at the Zancudo Project before the end of the second quarter of 2026. These concentrates will be sold under an existing offtake agreement with Trafigura Pte. Ltd. ("Trafigura"). Receipt of the Industrial Facility Permit also enables the Company to receive the second advance of US$2.5 million from Trafigura under a US$9.0 million prepayment facility that is funding the completion of the Zancudo Project construction.

Serafino Iacono, Executive Chairman of Denarius Metals, commented, "We are excited to reach this very important milestone for our Company. With this permit now in hand, we are able to commence construction of our new processing plant. All equipment for the processing plant is located at the project site and we have engaged a local contractor to carry out the construction activities that are expected to have the processing plant in operation before the end of the second quarter of 2026. In the meantime, we will continue our early production activities which are generating some production and operating cash flow while our mine contractor carries out development to prepare the mine for semi-mechanized mining to feed the new processing plant."

Early Production Results Through September 2025

Denarius Metals commenced mining operations in April 2025 at its Zancudo Project. During the early production phase that will run until the new processing plant goes into operation, mined material is being crushed onsite and then shipped to a local port for sale to Trafigura to start generating operating cash flow. In the second and third quarters of 2025, a total of approximately 1,200 tonnes have been mined, of which a total of 878 tonnes have been shipped to Trafigura. With grades averaging 7.3 g/t gold and 164.5 g/t silver, the material in these shipments contained approximately 207 ounces of gold and 4,641 ounces of silver. During the current early production phase, Trafigura's payability rates range from 55% to 70% for gold and 30% to 40% for silver, depending on the grades of the material. For the shipments completed through the end of September 2025, the Company received payment for approximately 126 ounces of gold and 1,694 ounces of silver. Trafigura's payability rates in the early production phase reflect the additional costs they have to incur to bring the material to a saleable condition. When the Company begins shipping concentrates to Trafigura, payability rates will increase to 86% to 90% for gold and 35% to 45% for silver, depending on the grades in the concentrates.

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 commenced mining operations in the second quarter of 2025 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 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 timing to commence plant operations at the Zancudo Project's new processing plant. 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/271015

FAQ

What does Denarius Metals' Industrial Facility Permit mean for DNRSF shareholders?

The permit allows construction of a 1,000 tpd processing plant and supports planned operations before end of Q2 2026.

How much funding did Trafigura advance to Denarius Metals at Zancudo (DNRSF)?

Receipt of the permit enables a US$2.5M second advance under a US$9.0M prepayment facility.

What were Zancudo early production volumes and grades through September 2025 for DNRSF?

Approximately 1,200 tonnes mined, 878 tonnes shipped; average grades 7.3 g/t Au and 164.5 g/t Ag.

How much metal did Denarius ship and get paid for through Sept 2025 (DNRSF)?

Shipped material contained ≈207 oz Au and 4,641 oz Ag; payments covered ≈126 oz Au and 1,694 oz Ag.

When will DNRSF start selling higher-payability concentrates to Trafigura?

The company expects to begin shipping concentrates to Trafigura once the processing plant is operational, with gold payability rising to 86–90%.