Denarius Metals Corp. (TSXV: DSLV | OTCQX: DNRSF) has entered into a definitive agreement with the shareholders of Rio Narcea Recursos, S.L. (RNR) to acquire a 50% interest, which has the rights to exploit the historic producing Aguablanca nickel-copper mine located in Monesterio, Spain, approximately 88 km from the company’s Lomero Project.
“The acquisition of a 50% stake in RNR reflects the continued execution of our strategy of acquiring significant projects in highly prospective and tier one mining jurisdictions in Spain. The acquisition gives us ownership in the only nickel deposit in Spain and one of the few in Europe,” commented Denarius CEO Serafino Iacono.
“With our Zancudo Project in Colombia already on track to commence production in 2024, this acquisition gives us a second mine going into operation next year with Aguablanca set to resume production through underground mining in the next 12 months. The acquisition also accelerates our path to production from our flagship Lomero Project using excess capacity available in RNR’s 5,000tpd processing plant.”
Under the agreement, Alto Minerals S.L.U. (a wholly owned subsidiary of Denarius Metals in Spain and owner of the company’s Lomero Project), has acquired 50% of all the issued and outstanding shares of RNR in an arm’s length transaction with cash consideration totaling €25M, of which €2.5M has been paid on signing and the balance will be paid in instalments. €5.0M will be due at the end of March 2024 and approximately €5.8M at the end of June, September, and December of 2024.
The company used a portion of the proceeds from its recently completed convertible debenture financing to fund the initial payment and is currently in discussion with several parties regarding potential structured financing sources, including royalties, streaming, prepayments on offtake contracts and other similar arrangements, to fund the future payments due in 2024. No finder’s fees are being paid in connection with the acquisition.
For further information, please visit: www.denariussilver.com
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