Business
Denarius Metals Provides Update on Financing for Zancudo Project in Colombia
Toronto, Ontario--(Newsfile Corp. - September 13, 2023) - Denarius Metals Corp. (TSXV: DSLV) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today
About this update from Denarius Metals Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - September 13, 2023) - Denarius Metals Corp. (TSXV: DSLV) (OTCQX: DNRSF) (\"Denarius Metals\" or the \"Company\") announced today that, in response to feedback from current and potential new investors, the Company is shifting the focus of its previously announced financing for its Zancudo Project to an offering of convertible debentures (the \"Offering\"). Serafino Iacono, Executive Chairman and CEO of Denarius Metals, commented, \"With the positive outlook for future gold prices, we are seeing demand from investors for an instrument that provides them with exposure to the potential upside in gold prices, similar to what our management team was successful in deploying to fund projects for GCM Mining and Caldas Gold in recent years. The proposed convertible debentures will be serviced by cash flow generated by our Zancudo Project, which is being prepared to commence operation next year, and will provide investors with returns through the monthly interest payments, the quarterly gold premiums and convertibility into shares of the Company. Management and the Board currently own approximately 23% of the issued and outstanding common shares of the Company and will be participating in this Offering.\" The Company plans to issue up to 25,000 Senior Unsecured Convertible Debentures (the \"Debentures\") for gross proceeds of up to CA$25,000,000. The key terms of the Debentures include: The Debentures will be issued at a price of CA$1,000 per Debenture. The Debentures are non-callable and will mature and become payable in full on the date which is five years from the date of issuance (\"Maturity\"), unless otherwise converted, prepaid or accelerated in accordance with their terms. The Debentures will bear interest at 12% per annum, paid monthly in cash. The Company will pay a Gold Premium on the principal amount of the Debentures. The Gold Premium will be paid 30 days after the end of each quarter following the first anniversary of the issuance date. The Gold Premium will be calculated as a percentage equal to 25% of (i) the amount, if any, by which the London P.M. Fix on the quarterly measurement date exceeds US$1,850 per ounce (the \"Floor Price\") divided by (ii) the Floor Price. At any time prior to Maturity, the Debentures will be convertible at a holder's option into common shares of the Comp...