DENARIUS METALS ANNOUNCES THE LAUNCH OF A US$20,000,000 NOTES OFFERING BY RIO NARCEA RECURSOS S.A. TO FUND THE RESTART OF THE AGUABLANCA NICKEL-COPPER PROJECT IN SPAIN

Executive Summary

• Denarius Metals’ joint‑venture partner Rio Narcea Recursos (RNR) is launching a best‑efforts offering of up to US$20 million of 12% secured notes to fund the restart of the Aguablanca nickel‑copper project in Spain.
• The notes are priced at US$1,000 each, mature in five years, and bear quarterly interest; a portion of proceeds will be escrowed for the first 12 months of interest payments.
• Net proceeds will finance capital expenditures for dewatering, underground mine rehabilitation, processing plant refurbishment, and working‑capital needs, targeting production restart by Q4 2026.

Key Details

• Offering Size: Up to US$20 million (maximum 20,000 notes).
• Note Price / Principal: US$1,000 per note.
• Interest Rate: 12% per annum, paid quarterly in arrears (March, June, September, December). First interest payment covers period from closing to March 31 2026.
• Maturity: Five years from issuance date; no scheduled principal repayments during the first 12 months.
• Redemption Features:
• Holders may request repayment of up to US$250 per note without penalty on the second anniversary.
• RNR may redeem notes, in part or in full, without penalty on the third anniversary; any remaining notes mature on the five‑year date.
• Security: First‑ranking charge on all RNR assets (processing plant, mining rights, offtake agreements). Non‑recourse to Denarius Metals and other JV partners.
• Use of Proceeds:
• Capital expenditures for Aguablanca restart – dewatering of underground mine, rehabilitation, and processing plant refurbishment.
• Working capital, including a 12‑month interest escrow.
• Project Context: Aguablanca is a fully permitted 5,000 tpd nickel‑copper operation with a historic underground mine; RNR aims to resume production by Q4 2026 pending financing.
• Additional Project Updates:
• Phase 1 assessment of the 5,000 tpd plant completed (METSO Spain). Phases 2/3 refurbishment expected to be financed separately.
• Dewatering systems installed in 2025; design complete, execution to begin once financing is secured (estimated ≤6 months).
• Electrical connections being arranged with Endesa; ventilation, ramp access, and escapeway construction slated post‑dewatering.
• Offtake Arrangement: 100% of concentrates to be sold to Boliden Commercial AB at market prices, including nickel, copper, gold, silver, platinum, palladium, and cobalt, shipped via Huelva Port to Finland.
• Insider Participation: Executive Chairman Serafino Iacono intends to purchase up to US$2 million of notes.

Notable Quotes

• “The secured‑note financing provides the critical capital needed to restart Aguablanca’s operations and deliver on our strategic vision for a European nickel‑copper hub,” – Serafino Iacono, Executive Chairman, Denarius Metals.