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

Executive Summary

• Denarius Metals received a 30‑year Industrial Facility Permit for the Zancudo Project, enabling construction of a 1,000 t/d processing plant slated to be operational by Q2 2026.
• The permit triggers the second advance payment of US$2.5 million from Trafigura under the existing US$9.0 million pre‑payment facility.
• Early production (April–Sept 2025) has already shipped 878 t of ore, delivering ~207 oz Au and 4,641 oz Ag; cash receipts to date total ~126 oz Au and 1,694 oz Ag.

Key Details

• Permit Approval
• Industrial Facility Permit granted by Corantioquia (Colombia) for a term of 30 years.

• Allows start of construction on the 1,000 t/d processing plant at Zancudo.

• Construction Timeline

• Plant construction to begin immediately; target in‑service date before end of Q2 2026.

• All major equipment already on site; local contractor engaged for build‑out.

• Financing Impact

• Second draw from Trafigura pre‑payment facility: US$2.5 million (total facility US$9.0 million).

• Funds earmarked to complete processing plant construction.

• Early Production (April–Sept 2025)

• Total mined tonnage: ~1,200 t; shipped tonnage: 878 t.
• Average grades: 7.3 g/t Au, 164.5 g/t Ag.
• Contained metals in shipments: ≈207 oz Au, 4,641 oz Ag.
• Payability rates (early phase): Gold 55‑70%; Silver 30‑40%.

• Cash received to date: ≈126 oz Au, 1,694 oz Ag.

• Future Payability Expectations

• Once concentrates are shipped, expected payability: Gold 86‑90%; Silver 35‑45%, depending on grade.

• Offtake Agreement

• Existing offtake contract with Trafigura Pte. Ltd. remains in place for gold‑silver concentrates.

Notable Quotes

“We are excited to reach this very important milestone… With this permit now in hand, we are able to commence construction of our new processing plant.” – Serafino Iacono, Executive Chairman, Denarius Metals.