Denarius Metals secures proxy support for debenture restructuring plan

The board of directors at Denarius Metals is pushing for the Transaction Resolution, which would allow the company to redeem its Series 1 and Series 2 debentures early on July 31, 2026. This move is designed to preserve cash for the development of the Zancudo Project in Colombia and ongoing operations at the Aguablanca site in Spain. The company faces a challenging balance sheet environment, exacerbated by a sharp rise in gold prices that triggered substantial "Gold Premium" payments to debenture holders.

Management opted for this share-based settlement strategy after finding that traditional debt refinancing alternatives would have placed an unsustainable burden on the company’s capital structure. To secure the necessary consent, the proposal includes a "Make Whole Payment" calculated at a 12% discount rate and a 3% consent fee. Independent directors have reviewed the valuation provided by Blair Franklin Capital Partners and concluded that the restructuring is in the best interests of the company. Shareholders are scheduled to vote on the resolution on July 17, 2026, one day after the special meetings for debenture holders.