Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) has officially started mining activities at its Zancudo Project in Colombia. The company expects its first production in the second quarter of 2025, marking a major milestone in its development efforts.
Zancudo Project Progress
In 2024, Denarius Metals made significant progress with the Zancudo Project. The company secured the necessary mining license and Environmental Impact Study (EIS) approval. This prepared the site for its first mining operation. The rise in gold and silver prices has increased the project’s profitability potential.
The mine contractor is moving forward with a development plan to open four primary mining fronts within the next four to six months. Mining activities are already underway in certain accessible areas, and ore is being stockpiled. By the end of April 2025, ore deliveries to Trafigura Pte. Ltd. under an offtake agreement will commence. The processing plant’s equipment is on-site, and installation will begin in the summer of 2025, with production expected to start by the fourth quarter of 2025.
Financial Strategy and Investment
Denarius Metals secured $20.3 million in 2024 through several financings, including the sale of a net smelter royalty for Zancudo’s future production and three private placements. In March 2025, the company raised an additional $4.6 million through a non-brokered private placement. Executive Chairman Serafino Iacono has been a key supporter, investing significantly in these recent financings.
Key Offtake Agreements
In 2024, Denarius Metals signed key offtake contracts with global industry leaders. These agreements ensure the sale of 100% of concentrate from the Zancudo and Aguablanca projects. An eight-year contract with Trafigura guarantees the sale of Zancudo’s gold-silver concentrate. Additionally, Boliden Commercial AB signed an agreement to purchase Aguablanca’s nickel-copper concentrate. These contracts will provide a stable revenue stream for the company as it develops its mining operations.
Denarius also completed a 7,225-meter surface drilling program at Zancudo in 2024. The goal was to upgrade inferred resources to the indicated category. Initial drilling results confirmed high gold and silver grades. The company plans further drilling in 2025 to continue expanding the resource base.
Aguablanca Project’s Strategic Value
In 2024, Denarius’ Aguablanca Project in Spain earned the designation of “Strategic Project” from the European Commission. This recognition means the project will contribute to the EU’s critical raw materials supply, benefiting from coordinated support from financial institutions and streamlined permitting processes. The Aguablanca project meets high environmental, social, and governance (ESG) criteria, enhancing its operational viability and access to financing.
Financial Performance and Outlook
For Q4 2024, Denarius Metals reported a net income of $2.1 million, reversing the net loss from the same period in 2023. For the full year 2024, the company reduced its net loss to $9.9 million, compared to a $14.4 million loss in 2023. This improvement was driven by non-cash gains and strategic moves that strengthened Denarius’ financial position.
Conclusion
Denarius Metals is well-positioned for growth with the Zancudo and Aguablanca projects. The company’s focus on securing financing, forging lucrative offtake agreements, and expanding exploration efforts ensures its success in the competitive metals sector. The Zancudo Project, set to begin production in 2025, promises strong returns, especially with favorable gold and silver prices.
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