Excellon Closes Acquisition of Mallay Silver Mine and Tres Cerros Gold/Silver Exploration Property in Peru
Excellon Resources (TSXV: EXN) has completed the acquisition of Minera CRC S.A.C., securing ownership of the Mallay Silver Mine and Tres Cerros Gold/Silver Exploration Property in Central Peru. The Mallay Mine, previously operated by Buenaventura from 2012-2018, produced over 18 million silver-equivalent ounces and includes extensive infrastructure valued at US$115 million in historical capital investment.
The acquisition terms include US$1.57 million in upfront cash payments, US$650,000 in bridge payments, and the issuance of 17.86 million common shares. Excellon plans to restart operations within 3-6 months, beginning with underground rehabilitation and technical studies. The company will also explore the 2,000-hectare Tres Cerros property, which features a significant gold-silver mineralization corridor.
Excellon Resources (TSXV: EXN) ha completato l'acquisizione di Minera CRC S.A.C., assicurandosi la proprietà della miniera d'argento Mallay e della proprietà di esplorazione aurifera e argentifera Tres Cerros nel centro del Perù. La miniera Mallay, precedentemente gestita da Buenaventura dal 2012 al 2018, ha prodotto oltre 18 milioni di once equivalenti in argento e comprende un'infrastruttura estesa valutata in 115 milioni di dollari USA in investimenti storici di capitale.
I termini dell'acquisizione prevedono 1,57 milioni di dollari USA in pagamenti iniziali in contanti, 650.000 dollari USA in pagamenti ponte e l'emissione di 17,86 milioni di azioni ordinarie. Excellon intende riavviare le operazioni entro 3-6 mesi, iniziando con la riabilitazione sotterranea e studi tecnici. La società esplorerà inoltre la proprietà Tres Cerros di 2.000 ettari, che presenta un importante corridoio di mineralizzazione aurifera e argentifera.
Excellon Resources (TSXV: EXN) ha completado la adquisición de Minera CRC S.A.C., asegurando la propiedad de la mina de plata Mallay y la propiedad de exploración de oro/plata Tres Cerros en el centro de Perú. La mina Mallay, operada anteriormente por Buenaventura entre 2012 y 2018, produjo más de 18 millones de onzas equivalentes de plata e incluye una infraestructura extensa valorada en 115 millones de dólares estadounidenses en inversión de capital histórica.
Los términos de la adquisición incluyen 1,57 millones de dólares estadounidenses en pagos iniciales en efectivo, 650.000 dólares estadounidenses en pagos puente y la emisión de 17,86 millones de acciones comunes. Excellon planea reiniciar las operaciones en un plazo de 3 a 6 meses, comenzando con la rehabilitación subterránea y estudios técnicos. La compañía también explorará la propiedad Tres Cerros de 2.000 hectáreas, que cuenta con un importante corredor de mineralización de oro y plata.
Excellon Resources (TSXV: EXN)가 Minera CRC S.A.C. 인수를 완료하여 페루 중부에 위치한 Mallay 은광과 Tres Cerros 금/은 탐사 부동산의 소유권을 확보했습니다. Mallay 광산은 2012년부터 2018년까지 Buenaventura가 운영했으며, 1,800만 온스 이상의 은 환산 산출량을 기록했고, 역사적 자본 투자액이 1억 1,500만 미국 달러에 달하는 광범위한 인프라를 포함합니다.
인수 조건에는 157만 미국 달러의 선급 현금 지급, 65만 미국 달러의 브리지 페이먼트, 그리고 1,786만 보통주 발행이 포함됩니다. Excellon은 3~6개월 내에 지하 복구 작업과 기술 연구를 시작하며 운영 재개를 계획하고 있습니다. 또한 2,000헥타르 규모의 Tres Cerros 부동산을 탐사할 예정이며, 이 부지는 중요한 금-은 광화대가 형성되어 있습니다.
Excellon Resources (TSXV : EXN) a finalisé l'acquisition de Minera CRC S.A.C., assurant ainsi la propriété de la mine d'argent Mallay et de la propriété d'exploration or/argent Tres Cerros dans le centre du Pérou. La mine Mallay, exploitée précédemment par Buenaventura de 2012 à 2018, a produit plus de 18 millions d'onces équivalentes en argent et comprend une infrastructure étendue évaluée à 115 millions de dollars US en investissements historiques.
Les modalités de l'acquisition comprennent un paiement initial en espèces de 1,57 million de dollars US, des paiements relais de 650 000 dollars US, ainsi que l'émission de 17,86 millions d'actions ordinaires. Excellon prévoit de redémarrer les opérations dans un délai de 3 à 6 mois, en commençant par la réhabilitation souterraine et des études techniques. La société explorera également la propriété Tres Cerros de 2 000 hectares, qui présente un important corridor de minéralisation or-argent.
Excellon Resources (TSXV: EXN) hat die Übernahme von Minera CRC S.A.C. abgeschlossen und sich damit das Eigentum an der Mallay Silbermine sowie an der Tres Cerros Gold-/Silber-Explorationsfläche in Zentralperu gesichert. Die Mallay-Mine, die zuvor von Buenaventura von 2012 bis 2018 betrieben wurde, hat über 18 Millionen Silberäquivalent-Unzen produziert und verfügt über umfangreiche Infrastruktur mit einem historischen Kapitalwert von 115 Millionen US-Dollar.
Die Übernahmebedingungen umfassen 1,57 Millionen US-Dollar an sofortigen Barzahlungen, 650.000 US-Dollar an Brückenzahlungen sowie die Ausgabe von 17,86 Millionen Stammaktien. Excellon plant, den Betrieb innerhalb von 3 bis 6 Monaten wieder aufzunehmen, beginnend mit der unterirdischen Sanierung und technischen Studien. Das Unternehmen wird zudem das 2.000 Hektar große Tres Cerros-Gebiet erkunden, das einen bedeutenden Gold-Silber-Mineralisierungskorridor aufweist.
- Acquisition of a fully permitted, past-producing silver mine with substantial existing infrastructure worth US$115 million
- Historical production of over 18 million silver-equivalent ounces from 2012-2018
- Potential near-term restart within 3-6 months
- Additional exploration upside with 2,000-hectare Tres Cerros property
- Existing infrastructure includes flotation plant, underground development, tailings facilities, and grid power access
- Significant share dilution with issuance of 17.86 million new common shares
- Required cash payments of US$2.22 million
- Four-month rehabilitation period needed before production decision
- 5-8% zinc and lead metals stream agreement obligation
Toronto, Ontario--(Newsfile Corp. - June 24, 2025) - Excellon Resources Inc. (TSXV: EXN) (FSE: E4X2) ("Excellon" or the "Company") is pleased to announce that it has closed the previously announced acquisition (the "Acquisition") of all of the issued and outstanding shares (the "Minera Shares") of Minera CRC S.A.C. ("Minera CRC"), a Peruvian company that holds a
Excellon has now acquired a fully permitted, past-producing and potential near-term restart underground silver-lead-zinc mine with substantial existing infrastructure and exploration upside. The Company will immediately begin the next phase of its growth strategy, focused on advancing restart plans at the Mallay Mine and delineating high-sulphidation gold-silver mineralization at the Tres Cerros Exploration Property.
Transaction Highlights
Mallay Mine: A fully permitted underground silver-lead-zinc mine, historically operated by Compañía de Minas Buenaventura S.A.A. ("Buenaventura") between 2012-2018, producing more than 18 million silver-equivalent ounces during that period.1
Tres Cerros Exploration Property: A 2,000-hectare land package adjacent to the Mallay Mine, encompassing a 2.5 km x 0.5 km corridor of high-sulphidation gold-silver mineralization with coincident Induced Polarization and resistivity anomalies, representing a compelling bulk-tonnage exploration target.
Infrastructure Advantage: The Mallay Mine site includes a flotation plant, underground development, tailings facilities and grid power access, representing over US
$115 million in historical capital investment, which was acquired for a fraction of the replacement cost.Near-Term Strategy: Excellon plans to initiate rehabilitation of the underground workings, confirmatory technical studies, and near-mine drilling to support a restart decision within the next three to six months.
Shawn Howarth, President and CEO of Excellon, commented, "After returning from the Mallay Mine site and meeting with our operations and restart team, we are pleased with the condition of the existing infrastructure and the team's readiness to execute. We are confident that the underground rehabilitation can be completed within a four-month period, after which we will be positioned to make a production decision. This marks the beginning of a new chapter for Excellon as we decisively advance our goal of returning to silver production."
Next Steps
The Company will aggressively pursue a strategy that demonstrates not only the production potential at the Mallay Mine, but also the significant exploration potential through several identified near-mine and regional exploration targets. Near-term initiatives include:
Completion of a mineral resource estimate for the Mallay Mine, incorporating an updated block model based on historical information, which is currently underway.
Initiation of site rehabilitation, including mobilization of the site team and reopening access at the 4,150 and 4,090 levels.
Once mine rehabilitation is complete, commencement of near-mine drilling at the Mallay Mine to expand mineralization.
Concurrent with the mine reopening, exploration of high priority near-mine targets adjacent to the Mallay Mine, including the Pierina vein system, an area of gold mineralization developed by Buenaventura which remains underexplored.
Advance surface mapping at the Tres Cerros Exploration Property.
Acquisition Consideration and Financing
The Acquisition was completed pursuant to a third amended and restated share purchase agreement dated April 29, 2025 (the "Purchase Agreement"), originally dated October 31, 2024, between the Company and Adar Mining Corp. ("Adar") and an agreement of purchase and sale dated March 10, 2025 (the "Adar/Premier Purchase Agreement") between Adar, as purchaser, and Premier Silver Corp. ("Premier") and 1267104 B.C. Ltd ("126"), as vendors, as assigned by Adar to the Company. Pursuant to the Purchase Agreement, Excellon acquired all of Adar's interest in the Adar/Premier Purchase Agreement and all of the indebtedness, liabilities and obligations owing by Premier or 126 to Adar (the "Adar Debt") in consideration for: (i) an aggregate amount of US
Under the Adar/Premier Purchase Agreement, the Company, as the assignee of Adar, acquired from Premier and 126 the Minera Shares in consideration for: (i) US
Pursuant to the Purchase Agreement, the Company entered into the following agreements (collectively, the "Transaction Documents"): (i) a back in rights agreement with Adar and M4G LLC, providing for the sale of up to a
The Common Shares issued in connection with the Acquisition are subject to a four-month hold period pursuant to applicable Canadian securities laws which will expire on October 24, 2025. In addition, recipients of the Adar Directed Common Shares are subject to a contractual lock-up period of 12 months which will expire on June 23, 2026. The Acquisition has received final acceptance of the TSX Venture Exchange.
Following the closing of the Acquisition, Excellon has 239,341,078 Common Shares issued and outstanding on a non-diluted basis.
Qualified Person
Steven L. Park, M.Sc., C.P.G., an independent consulting geologist and a qualified person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information related to the Tres Cerros Exploration Property in this news release.
Paul Keller, Chief Operating Officer of the Company and a "qualified person" within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information related to the Mallay Mine in this news release.
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 potential restart of the Mallay Silver Mine in Peru. Excellon also holds a portfolio of exploration-stage projects, including Kilgore, an advanced gold project in Idaho, 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
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 include statements regarding the proposed restart of the Mallay Mine; exploration and drilling programs, including the timing, completion and results thereof; potential mineralization; and the Company's objectives, goals and future plans and strategies. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. 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 a feasibility study which recommends a production decision, the inability of the Company to complete a restart of the Mallay Mine; 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; general economic and market conditions, the "Risk Factors" in the Company's annual information form dated March 31, 2025 (the "2025 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 2025 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 Source: Production figures for the Mallay Mine from 2012 to 2018 are based on public disclosures by Buenaventura, including annual reports, investor presentations and earnings call transcripts published during the corresponding periods. Data reflects Mallay Mine-specific production in silver, lead and zinc, converted to silver-equivalent values based on prevailing metals prices for the corresponding period.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256576
FAQ
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