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

Core Points - Denarius Metals has received approval for the Industrial Facility Permit for its Zancudo Project in Colombia, allowing the construction of a 1,000 tonnes per day processing plant, expected to start operations by the end of Q2 2026 [1][2] - The company will generate operating cash flow through early production activities, having mined approximately 1,200 tonnes of material by September 2025, with shipments to Trafigura [3][5] - Denarius Metals is engaged in the acquisition and development of precious metals and polymetallic mining projects in Colombia and Spain, with a focus on high-grade deposits [4][6] Company Developments - The Industrial Facility Permit has a term of 30 years and enables the company to receive a second advance of US$2.5 million from Trafigura under a US$9.0 million prepayment facility [1][2] - Early production activities have commenced, generating cash flow while preparing the mine for semi-mechanized mining [2][3] - The company has engaged a local contractor for the construction of the processing plant, with all necessary equipment already on-site [2] Production and Financials - In the early production phase, mined material has been crushed and shipped to Trafigura, with grades averaging 7.3 g/t gold and 164.5 g/t silver, resulting in approximately 207 ounces of gold and 4,641 ounces of silver shipped [3] - Trafigura's payability rates during early production range from 55% to 70% for gold and 30% to 40% for silver, which will increase to 86% to 90% for gold and 35% to 45% for silver once concentrates are shipped [3]