Denarius Metals Corp. (TSXV: DSLV | OTCQX: DNRSF) has closed the second and final tranche of its private placement of senior unsecured convertible debentures for additional gross proceeds of C$14.1M.
In total, the company issued over 20.6M debentures at a price of C$1.00 per debenture for total proceeds of C$20.6M. The debentures, which expire on 19 October 2028, bear interest at a rate of 12% per annum which will be paid monthly.
The first interest payment will be made on 30 November 2023. The company has set aside a total of C$2.48M in escrow from the proceeds to fund the interest payments during the first year of the term of the debentures.
The company intends to use the proceeds (after the interest escrow) to fund the construction activities at its Zancudo project in Colombia, as set out in its preliminary economic assessment announced on 30 October 2023, and for working capital and general corporate purposes.
The debentures are subject to a statutory hold period of four months plus one day after the date of issuance. The company has received conditional approval to list the debentures on Cboe Canada after the expiry of the hold period. Listing of the debentures on Cboe Canada is subject to final approval by Cboe Canada at the time of listing and the company fulfilling listing requirements.
In connection with the second tranche of the offering, Aris Mining Corporation, an insider of the company, acquired a total of C$5M of debentures. Prior to completion, Aris Mining beneficially owned and controlled 10,351,889 shares, representing approximately 16.39% of the company’s issued and outstanding shares, and 25,972,223 warrants (exercisable for 5,972,222 shares).
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