Denarius Metals Fuels Growth with CA$16.7M for Colombia and Spain Mines

TORONTO, ON – March 09, 2026 – Denarius Metals Corp. has significantly strengthened its financial position with a CA$16.7 million cash infusion, a move the company says will fuel a “transformational year” of growth across its mining operations in Colombia and Spain. The capital, raised since the start of 2026 through the exercise of approximately 27.7 million investor warrants, provides crucial funding as the junior miner pushes to scale up production at two key projects.

In a statement, Executive Chairman Serafino Iacono highlighted the importance of the new funds. “We are very pleased with this latest development which strengthens our balance sheet as we continue to execute our growth strategy in Colombia and Spain,” he commented. The company is now focused on accelerating its Zancudo gold-silver project in Colombia toward full-scale commercial production and restarting a strategically important nickel-copper mine in Spain.

Bolstering the Balance Sheet Amidst Caution

The recent warrant exercises, priced between CA$0.60 and CA$0.66 per share, have boosted the company's issued and outstanding common shares to over 189 million, bringing its market capitalization to approximately CA$206 million as of March 6. While the capital injection is a clear vote of confidence from warrant holders, it comes at a critical juncture for Denarius, which is navigating the costly transition from development to operation.

Despite the positive funding news, market analysis suggests a degree of caution. An automated analysis from TipRanks recently assigned the company’s stock a “Neutral” rating, pointing to a history of “large losses, persistent cash burn, and rising leverage.” Similarly, a Simply Wall St report noted that the company’s share price dipped after the announcement, suggesting that much of the recent optimism may have already been priced into a stock that has gained over 100% in the last year. These analyses underscore the high-stakes nature of mine development, where significant upfront investment precedes revenue and profitability.

Investors are weighing the fresh capital against the company's financial history and the inherent execution risks of bringing complex mining projects online. The fully diluted share count, which stands at nearly 345 million when including all outstanding warrants, options, and convertible debt, also points to the potential for future dilution as the company continues to fund its ambitious growth plans.

Zancudo Project: The Path to Commercial Production

The primary destination for a portion of the new capital is the 100%-owned Zancudo Project in Colombia, a high-grade gold and silver deposit. Denarius is aggressively pushing to transition the project from its current “early production” phase to full commercial concentrate production by the end of the third quarter of 2026.

Early results show promising operational momentum. Shipments of crushed material to commodity trading giant Trafigura are increasing, rising from 362 tonnes in January to 581 tonnes in February. The mined material has shown impressive grades, averaging approximately 10 g/t gold and 200 g/t silver over the last two months. To handle the increased volume, the company is installing a new mill at the historic Independencia Mine site while construction on a new 1,000 tonnes-per-day processing plant proceeds.

The shift to producing and selling concentrate, rather than just crushed ore, is a critical step that is expected to be “transformational” for the project’s economics. Payability rates—the percentage of contained metal that the buyer pays for—are projected to jump significantly, from the current 30-70% for gold up to 86-90% once concentrate is shipped. This operational pivot, supported by the recent acquisition of all final permits and a new technical report, is central to the company's strategy for generating substantial cash flow from its Colombian asset.

Spain's Strategic Play: Critical Minerals and EU Backing

Across the Atlantic, Denarius is advancing a portfolio of projects in Spain focused on critical minerals vital to the global energy transition. The spotlight is on the Aguablanca Project, a former nickel-copper mine that the company aims to restart in the second quarter of 2026.

Significantly, Aguablanca has been designated a “Strategic Project” by the European Union under its Critical Raw Materials Act. This status is reserved for projects deemed essential for securing the continent's supply of materials needed for its green and digital ambitions. The designation provides major advantages, including streamlined permitting and enhanced access to financing, positioning Aguablanca as a key contributor to Europe’s resource independence.

Denarius, which operates the project and holds a 22% interest, is actively working to secure the necessary joint venture-level financing for the restart. In January, its partner company launched a US$20 million notes offering specifically to fund the project’s reactivation. With all major permits in hand, the successful completion of this financing round is the final hurdle before restart activities can commence.

Riding the Wave of Bullish Commodity Markets

The company’s dual-continent strategy appears well-timed to capitalize on strong commodity market trends. Forecasts for 2026 are overwhelmingly bullish for precious metals, providing a powerful tailwind for the Zancudo project. J.P. Morgan Global Research, for instance, projects gold prices could average over $5,000/oz by late 2026, while some analysts see silver potentially testing the $100/oz mark, driven by both investment and industrial demand.

Meanwhile, the outlook for the critical minerals targeted in Spain is equally compelling. Copper prices are expected to remain elevated, with major financial institutions like Goldman Sachs and Bank of America forecasting prices above $10,000 per tonne due to supply disruptions and surging demand from renewable energy, grid expansion, and AI data centers. While the nickel market is more complex, long-term demand from the electric vehicle battery sector is expected to create supply deficits, underpinning the strategic value of restarting a permitted European source like Aguablanca.

With fresh capital in its treasury, Denarius Metals is now firmly in an execution-focused phase. The company's success in 2026 will hinge on its ability to meet its ambitious construction and production timelines at Zancudo while finalizing the financing to unlock the strategic value of Aguablanca. For investors, the coming months will be a crucial test of whether the junior miner can successfully transform its high-potential assets into profitable, cash-flowing operations.