System.DllNotFoundException: 'Unable to load DLL 'xyz.dll'

I cannot resolve this runtime error:

System.DllNotFoundException: 'Unable to load DLL 'xyz.dll': 
The specified module could not be found. (Exception from HRESULT: 0x8007007E)'

I'm writing a simple library together with a console application which shows an example usage.

Solution structure:

MySolution
--> MyLibProject
--> MyConsoleProject

Where:

1. MyLibProject uses external xyz.dll which I have installed via NuGet package manager.
2. MyConsoleProject has MyLibProject added as a Reference by specifing a path to MyLibProject.dll on disk.

Moreover I can see that the xyz.dll has been successfully imported by MyConsoleProject as when checking MySolution\MyConsoleProject\bin\Debug\ folder I can find that both xyz.dll, MyLibProject.dll are there (I havn't added any of them manually).