TORONTO, May 31, 2021 (GLOBE NEWSWIRE) -- Denarius Silver Corp. (“Denarius” or “the Company”) (TSXV: DSLV) announced today that it has filed its unaudited interim condensed consolidated financial statements and accompanying management’s discussion and analysis (MD&A) for the three months ended March 31, 2021. These documents can be found on its website at www.denariussilver.com and by reviewing its profile on SEDAR at www.sedar.com. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted.
Serafino Iacono, Interim Chief Executive Officer of Denarius, commented, “We are excited about the prospects for value creation in Denarius with our focus on advancing mining projects in high-grade districts, including the recently acquired Lomero polymetallic project in Spain and the Guia Antigua and Zancudo silver-gold projects in Colombia. We have assembled a portfolio of assets located in close proximity to productive operations with robust infrastructure in place to help quickly advance these projects. Our effort in the first quarter of 2021 centered on the formation of Denarius through the RTO Transaction and raising the capital required for the exploration programs we are imminently launching at the Lomero and Guia Antigua Projects, full details of which we will be announcing shortly. Our early stage work will include an update of the historic inferred resource estimate for the Lomero Project. With forecasted growth in the demand for copper, the Lomero Project positions the Company well to participate in the evolving green metals market.”
First Quarter 2021 Highlights
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The Company, 1255269 B.C. Ltd. (the “Guia Antigua Vendor”) and Gran Colombia Gold Titiribi Corp., a wholly-owned subsidiary of Gran Colombia Gold Corp. (TSX: GCM), successfully completed a reverse take over transaction (“RTO Transaction”) on February 19, 2021, to create a new junior exploration company focused on advancing two silver-gold exploration projects, the Guia Antigua and Zancudo Projects, both of which are located in high-grade mining districts in Colombia. Concurrently with the closing of the RTO Transaction, the Guia Antigua Vendor completed a private placement financing and the gross proceeds of CA$8.4 million (approximately $6.7 million) were released from escrow to the Company. These funds will be used by the Company to continue with the exploration program at the Guia Antigua Project and for general corporate purposes.
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On April 29, 2021, the Company added its third project (the “Lomero Project”) with the acquisition of a 100% interest in the Investigation Permit Nº 14,977, also identified as Rubia, covering the areas occupied by the former Lomero-Poyatos Concessions and the mine within them in southern Spain. The Lomero Project is a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite belt with a historical estimate in the inferred category of 20.93 Mt of 3.08 g/t gold, 62.38 g/t silver, 0.90% copper, 0.85% lead and 3.05% zinc that remains open at depth and along strike. The historical estimate is reported within a >25% sulphur mineral envelope at a cut-off grade of 1.0 g/t Au for an underground mining scenario. The historical resource estimate was reported in a NI 43-101 technical report by Behre Dolbear with effective date of 2011. The parameters used to make the historical resource estimate are described in a NI 43-101 technical report by Behre Dolbear with effective date of April 5, 2021 that was published on SEDAR and the Company’s website on May 3, 2021. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
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In March 2021, in preparation for the Lomero Project acquisition and the planned exploration program to be undertaken by the Company over the next approximately two years at the Lomero Project, the Company completed a non-brokered private placement financing of 75,000,000 subscription receipts at a price of CA$0.45 per subscription receipt for aggregate gross cash proceeds of approximately CA$33.8 million (equivalent to approximately $26.9 million). The Subscription Receipts were converted into common shares and warrants on April 29, 2021.
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Denarius commenced trading on the TSX Venture Exchange (“TSXV”) under the symbol “DSLV” on March 8, 2021 and currently has 204.9 million common shares issued and outstanding. The Company has a strong shareholder base with approximately 27% owned by Gran Colombia Gold and 19% owned by King Street Capital.
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The Company reported a net loss for the first quarter of 2021 of $14.4 million, or $0.35 per share, compared with net loss of $Nil in the first quarter of 2020. The largest item affecting the net loss in the first quarter of 2021 was the $12.9 million one-time charge related to the RTO Transaction.
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The Company had cash and cash equivalents, including cash in escrow which has since been released, at the end of March 2021 totaling $32.4 million. After completing the Lomero Project acquisition and other expenditures, the Company currently has a cash position of approximately $22 million to fund its exploration programs and corporate expenditures.
About Denarius