DENARIUS METALS ANNOUNCES UPDATE ON ITS CAPITAL STRUCTURE

Denarius Metals disclosed that, in early 2026, holders exercised roughly 40.3 million warrants at prices ranging from CA$0.50 to CA$8.00, generating CA$24.7 million of gross proceeds. After the exercise the company has:

• 202,359,191 common shares outstanding (up ~10 % from early‑March levels).
• A fully‑diluted “in‑the‑money” share count of ≈336.6 million at a CA$0.91 closing price, giving a market cap of about CA$184 M.
• Detailed post‑exercise capital structure that lists remaining securities: 14.34 M stock options, ~52 M unlisted warrants (exercisable to 2030), convertible notes equivalent to 44.2 M shares, and debentures representing CA$14.3 M.

No new financing terms, off‑take agreements or project milestones were announced; the release is purely an accounting update of the capital structure after the warrant exercise.

• Cash infusion vs. cash burn: The $24.7 M proceeds improve liquidity but are modest relative to the company’s projected 2026 capex (~US$27 M for Zancudo plant construction, drilling and sustaining spend). The cash will likely be allocated to working‑capital needs and a portion of upcoming capital projects, but it does not eliminate the need for additional financing later in 2026.
• Dilution: Existing shareholders see dilution of ~10 % (from ~191.9 M to 202.4 M shares). The fully‑diluted count rises to >336 M when all outstanding options, warrants and convertibles are exercised, implying potential future dilution well above current levels.
• Market expectations: Prior releases (March‑April 2026) already signaled that the March‑17 listed warrants would be exercised and that cash from those exercises (~CA$18.7 M) had been received. The April‑08 update simply confirms a second, larger exercise. Investors anticipated this; therefore the news is expected and does not materially shift valuation.
• Strategic relevance: No new project milestones (e.g., plant commissioning, resource upgrades) were attached to the financing. Consequently, the impact on the flagship Zancudo PEA economics or the Spanish projects is neutral.

Overall, the announcement provides a modest liquidity boost but adds dilution and does not materially change the company’s near‑term outlook. Hence it is Routine – Positive (positive cash but expected).

Denarius Metals Corp. is a junior mining company focused on:

• Zancudo Project (Colombia): 100 % owned gold‑silver underground mine, with an indicated resource of ~1.0 Mt @ 6.9 g/t Au (≈217 koz Au) and 2.7 Moz Ag. A 1,000 t/d processing plant is under construction; commissioning targeted for Q3‑Q4 2026. The PEA (released March 30 2026) projects an 11‑year mine life, $2.0 bn revenue and a post‑tax IRR of >500 % based on $4,000/oz Au and $50/oz Ag.

• Spanish portfolio: 22 % interest in Rio Narcea Recursos (Aguablanca nickel‑copper restart) and 100 % interests in Lomero (polymetallic) and Toral (zinc‑lead‑silver). Recent exploration permits (Cruzadillo, Sep 2025) expand the Iberian Pyrite Belt footprint.