Denarius Metals Commences Mining at Zancudo Project in Colombia

Wedoany.com Report-Apr. 5, Denarius Metals has successfully begun mining operations at its Zancudo gold-silver project in Colombia, marking a significant milestone. The first production from the project is expected in Q2 2025. This achievement reflects the company’s efforts in 2024 to advance project development, obtain necessary mining licenses, and secure an environmental impact study approval.

Denarius Metals has signed offtake contracts for 100% of concentrate production from its projects.

In 2024, Denarius prioritized the Zancudo and Aguablanca projects in Spain, both set to start operations within the next year, ensuring internal cash flow. The European Commission recognized Aguablanca as a strategic project. The company has finalized long-term contracts with global companies for 100% of concentrate production. An eight-year agreement with Trafigura for Zancudo’s gold-silver concentrate and a deal with Boliden Commercial for Aguablanca’s nickel-copper concentrate were signed in 2024. Additionally, a prepayment agreement with Trafigura in February 2025 provided $2.5 million, with further payments pending construction milestones at Zancudo.

The Zancudo project’s development plan aims to open four primary fronts within four to six months. Early production activities are underway, with mining already underway in accessible areas. The contractor is stockpiling ore on-site, with deliveries to Trafigura scheduled to begin by the end of April. Processing plant equipment has arrived and is stored on-site, with earthworks commencing soon and plant installation planned for summer 2025. The plant is expected to start operations by Q4 2025.

To enhance financial liquidity, Denarius amended its convertible debentures and sold a 29% equity interest in Aguablanca to the RNR Shareholder Group, retaining a 21% stake. In December 2023, the company acquired a 50% stake in RNR for €25 million. These moves aim to mitigate delays in permits and licenses.

This news highlights Denarius Metals’ progress in Colombia, showcasing its commitment to advancing its projects and securing global partnerships.