Excellon Announces Offtake and Financing with Glencore to Restart Mallay Silver Mine
Excellon Resources (EXNRF) has secured a transformative agreement with Glencore to restart its Mallay Silver Mine in Peru. The deal includes a concentrate offtake agreement and a pre-export finance loan facility worth up to $7.5 million. Combined with recent equity financing, Excellon has arranged up to $18 million in total capital for the mine restart.
The facility includes a six-month grace period before initial repayment and will be secured by Mallay's concentrate production. Under the offtake agreement, Glencore will purchase 100% of Mallay's zinc-lead concentrate until 2028-2029. The non-binding agreement was signed on May 15, 2025, with final closing expected by the end of June.
Excellon Resources (EXNRF) ha ottenuto un accordo trasformativo con Glencore per rilanciare la sua miniera di argento Mallay in Perù. L'intesa prevede un contratto di vendita del concentrato e un finanziamento pre-esportazione fino a 7,5 milioni di dollari. Insieme al recente finanziamento azionario, Excellon ha raccolto fino a 18 milioni di dollari in totale per il rilancio della miniera.
Il finanziamento comprende un periodo di grazia di sei mesi prima del primo rimborso ed è garantito dalla produzione di concentrato di Mallay. Secondo l'accordo di vendita, Glencore acquisterà il 100% del concentrato di zinco-piombo di Mallay fino al 2028-2029. L'accordo non vincolante è stato firmato il 15 maggio 2025, con la chiusura definitiva prevista entro fine giugno.
Excellon Resources (EXNRF) ha asegurado un acuerdo transformador con Glencore para reactivar su mina de plata Mallay en Perú. El acuerdo incluye un contrato de compra de concentrados y una línea de crédito de financiamiento pre-exportación por hasta 7,5 millones de dólares. Sumado a la reciente financiación de capital, Excellon ha conseguido hasta 18 millones de dólares en capital total para el reinicio de la mina.
La línea de crédito incluye un período de gracia de seis meses antes del primer pago y estará garantizada por la producción de concentrado de Mallay. Según el acuerdo de compra, Glencore adquirirá el 100% del concentrado de zinc-plomo de Mallay hasta 2028-2029. El acuerdo no vinculante fue firmado el 15 de mayo de 2025, y se espera el cierre final para finales de junio.
Excellon Resources (EXNRF)는 페루의 Mallay 은광 재가동을 위해 Glencore와 변혁적인 계약을 체결했습니다. 이 계약은 농축물 구매 계약과 최대 750만 달러의 수출 전 금융 대출 시설을 포함합니다. 최근 주식 자금 조달과 더불어 Excellon은 광산 재가동을 위해 총 1,800만 달러의 자본을 마련했습니다.
이 금융 시설은 최초 상환 전 6개월의 유예 기간이 포함되며, Mallay의 농축물 생산을 담보로 합니다. 구매 계약에 따라 Glencore는 2028-2029년까지 Mallay의 아연-납 농축물 100%를 구매할 예정입니다. 비구속 계약은 2025년 5월 15일에 체결되었으며, 최종 마감은 6월 말까지 예상됩니다.
Excellon Resources (EXNRF) a conclu un accord transformateur avec Glencore pour relancer sa mine d'argent Mallay au Pérou. L'accord comprend un contrat d'achat de concentré et une facilité de prêt de financement pré-export pouvant atteindre 7,5 millions de dollars. Combiné au récent financement par actions, Excellon a sécurisé jusqu'à 18 millions de dollars de capital total pour la reprise de la mine.
Cette facilité inclut une période de grâce de six mois avant le premier remboursement et sera garantie par la production de concentré de Mallay. Selon l'accord d'achat, Glencore achètera 100 % du concentré de zinc-plomb de Mallay jusqu'en 2028-2029. L'accord non contraignant a été signé le 15 mai 2025, avec une clôture finale prévue d'ici fin juin.
Excellon Resources (EXNRF) hat eine wegweisende Vereinbarung mit Glencore getroffen, um die Wiederaufnahme der Mallay-Silbermine in Peru zu ermöglichen. Das Abkommen umfasst einen Abnahmevertrag für Konzentrate sowie eine Vor-Export-Finanzierungslinie in Höhe von bis zu 7,5 Millionen US-Dollar. Zusammen mit der jüngsten Eigenkapitalfinanzierung hat Excellon bis zu 18 Millionen US-Dollar Gesamtkapital für den Neustart der Mine bereitgestellt.
Die Finanzierung sieht eine sechsmonatige Karenzzeit vor der ersten Rückzahlung vor und wird durch die Konzentratherstellung von Mallay besichert. Im Rahmen des Abnahmevertrags wird Glencore 100 % des Zink-Blei-Konzentrats von Mallay bis 2028-2029 kaufen. Die unverbindliche Vereinbarung wurde am 15. Mai 2025 unterzeichnet, der endgültige Abschluss wird bis Ende Juni erwartet.
- Secured up to $18 million in total funding for mine restart
- Partnership with major mining company Glencore provides operational credibility
- Non-dilutive $7.5 million financing solution through loan facility
- Guaranteed purchaser for 100% of mine output until 2028-2029
- Six-month grace period provides flexibility during restart phase
- Agreement is currently non-binding
- Additional debt burden through loan facility
- Company is committing 100% of production to single buyer
Toronto, Ontario--(Newsfile Corp. - May 23, 2025) - Excellon Resources Inc. (TSXV: EXN) (FSE: E4X2) ("Excellon" or the "Company") is pleased to announce that it has entered into a non-binding agreement dated on May 15, 2025, with subsidiaries of Glencore plc ("Glencore") to support the restart of the past-producing Mallay Silver Mine ("Mallay") in Peru (the "Agreement"). The Agreement comprises a concentrate offtake and a pre-export finance loan facility (the "Facility") that together will provide the key funding required to recommence operations at Mallay and return Excellon to silver producer status.
With today's announcement, and including the equity financing which closed on May 14, 2025, the Company has arranged up to
Facility Highlights:
Size: Up to US
$7.5 million in funding.Structure: Pre-export finance loan agreement secured by Mallay's concentrate production and other/various guarantees; advances to be repaid from concentrate sales over the offtake term.
Offtake commitment: Glencore to purchase
100% of Mallay's zinc-lead concentrate until 2028 - 2029 depending on certain conditions.Grace period: The initial tranche includes a six-month grace period before initial amortization payment, providing additional flexibility during mine restart and ramp-up.
Use of proceeds: To fully finance the restart of the Mallay Silver Mine, covering mine rehabilitation, mill commissioning and working capital.
Shawn Howarth, President and CEO commented: "Partnering with Glencore - one of the world's foremost mining and commodity firms, with an extensive operational framework in Peru - is a transformational step for Excellon. Glencore's commitment is a strong vote of confidence in the quality and potential of the Mallay Mine and in our team's plan to bring the operation back into production. This agreement provides a non-dilutive financing solution, while also guaranteeing a home for our concentrates via a stable and secure offtake agreement at the most attractive terms presented to Excellon in a broader market tender. We look forward to a long and productive relationship with Glencore as we unlock Mallay's value and continue to grow Excellon into a leading silver producer."
The associated concentrate offtake agreement grants Glencore the right to purchase
About Excellon Resources Inc.
Excellon's vision is to realize opportunities through the acquisition and advancement of quality precious and base metal assets, leveraging an experienced management team for the benefit of its employees, communities and shareholders. The Company is focused on the near-term restart of the Mallay Silver Mine in Peru, which will position Excellon as an emerging silver producer. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an advanced gold project in Idaho, USA, and Silver City, a high-grade epithermal silver district in Saxony, Germany, providing additional growth upside. Additional details on Excellon's properties can be found at www.excellonresources.com.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
info@excellonresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, contained, referenced or incorporated by reference in this news release constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as: "actively", "advance", "anticipated", "assess", "believe", "cause", "commence", "completion", "conditions", "consideration", "continues", "development", "due course", "expectation", "exploration", "extend", "extension", "flexibility", "focused", "forward", "further", "future", "if", "implement", "liquidity", "looking", "maturity", "may", "negotiations", "occur", "opportunities", "options", "outcome", "outstanding", "potential", "providing", "reach", "restructuring", "risk", "subject to", "to be", "update", "vision", "waive", "when", "will", and "would", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, to, will, would (or not) be achieved, occur, provide, result, complete or support in the future or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such statements. Such factors include, among others: the risk that closing conditions for the Mallay acquisition or the Glencore financing are not satisfied in a timely manner or at all; risks related to construction, development and ramp-up of mining operations (including unanticipated costs or delays); commodity price fluctuations and global demand for silver, lead and zinc; operational and technical challenges in restarting an underground mine; regulatory and permitting risks; and general economic and market conditions. Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the inability of the Company to complete the Acquisition on the terms proposed or at all, the inability of the Company to receive necessary regulatory approvals, termination of the Agreement; failure of the Company to complete additional financing transactions on the terms proposed or at all; the inability to complete a feasibility study which recommends a production decision, the "Risk Factors" in the Company's annual information form dated March 31, 2025 (the "2024 AIF"), and the risks, uncertainties, contingencies and other factors identified in the Company's Management's Discussion and Analysis, and accompanying financial statements, for the year ended December 31, 2024, and the Company's other applicable public disclosure (collectively, "Company Disclosure"). The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the 2024 AIF and the other Company Disclosure. The forward-looking statements referenced or contained in this news release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the other Company Disclosure. Forward-looking statements contained herein are made as of the date of this news release (or as otherwise expressly specified) and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable laws.
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FAQ
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