Excellon Closes Glencore Offtake and Financing
Excellon Resources (OTC:EXNRF) has finalized an offtake and financing agreement with Glencore to restart its Mallay Silver Mine in Peru. The agreement includes up to US$7.5 million in secured funding through a Pre-Export Finance loan, with an initial drawdown of up to US$5.0 million and an optional US$2.5 million available until March 2026.
The loan terms include a SOFR + 5% interest rate and a six-month grace period following initial drawdown. The agreement also grants Glencore the right to purchase 100% of Mallay Mine's zinc and lead concentrates with silver by-product. The funds will support underground development, mill upgrades, and working capital needs to achieve commercial production.
Excellon Resources (OTC:EXNRF) ha concluso un accordo di offtake e finanziamento con Glencore per riavviare la miniera di Mallay Silver in Perù. L'intesa prevede fino a 7,5 milioni di USD di finanziamento garantito tramite un prestito Pre-Export Finance, con un primo prelievo fino a 5,0 milioni di USD e un'opzione per ulteriori 2,5 milioni di USD disponibile fino a marzo 2026.
I termini del prestito prevedono un tasso di interesse di SOFR + 5% e un periodo di grazia di sei mesi dopo il primo prelievo. L'accordo attribuisce inoltre a Glencore il diritto di acquistare il 100% dei concentrati di zinco e piombo della miniera di Mallay con argento come sottoprodotto. Le risorse serviranno per lo sviluppo in sotterraneo, gli aggiornamenti dell'impianto e il capitale circolante necessari per raggiungere la produzione commerciale.
Excellon Resources (OTC:EXNRF) ha cerrado un acuerdo de offtake y financiación con Glencore para reactivar la mina Mallay Silver en Perú. El acuerdo incluye hasta 7,5 millones de USD en financiación garantizada mediante un préstamo Pre-Export Finance, con un desembolso inicial de hasta 5,0 millones de USD y una opción de 2,5 millones de USD disponible hasta marzo de 2026.
Los términos del préstamo contemplan un interés de SOFR + 5% y un periodo de gracia de seis meses tras el desembolso inicial. El acuerdo también otorga a Glencore el derecho a comprar el 100% de los concentrados de zinc y plomo de la mina Mallay con el subproducto de plata. Los fondos respaldarán el desarrollo subterráneo, las mejoras de la planta y el capital de trabajo necesarios para alcanzar la producción comercial.
Excellon Resources (OTC:EXNRF)는 페루의 Mallay Silver 광산 재가동을 위해 Glencore와 오프테이크 및 자금 조달 계약을 체결했습니다. 이 계약은 선수출금융(Pre-Export Finance) 대출을 통해 최대 미화 750만 달러의 담보 자금을 포함하며, 초기 인출로 최대 미화 500만 달러가 제공되고 2026년 3월까지 선택 가능한 미화 250만 달러가 추가로 가능합니다.
대출 조건은 SOFR + 5%의 이자율과 초기 인출 후 6개월의 거치 기간을 포함합니다. 또한 Glencore는 몰레이 광산의 은 부산물이 포함된 아연 및 납 콘센트레이트를 100% 매수할 권리를 갖습니다. 자금은 지하 개발, 제련소(밀) 업그레이드 및 상업 생산 달성을 위한 운전자본에 사용됩니다.
Excellon Resources (OTC:EXNRF) a finalisé un accord d'offtake et de financement avec Glencore pour relancer la mine Mallay Silver au Pérou. L'accord prévoit jusqu'à 7,5 millions USD de financement garanti via un prêt Pre-Export Finance, avec un tirage initial pouvant atteindre 5,0 millions USD et une option de 2,5 millions USD disponible jusqu'en mars 2026.
Les conditions du prêt incluent un taux d'intérêt de SOFR + 5% et une période de grâce de six mois après le premier tirage. L'accord donne également à Glencore le droit d'acheter 100% des concentrés de zinc et de plomb de la mine Mallay avec l'argent en sous-produit. Les fonds financeront le développement souterrain, la modernisation de l'usine et les besoins en fonds de roulement pour atteindre la production commerciale.
Excellon Resources (OTC:EXNRF) hat eine Offtake- und Finanzierungsvereinbarung mit Glencore abgeschlossen, um die Mallay Silver Mine in Peru wieder in Betrieb zu nehmen. Die Vereinbarung umfasst bis zu 7,5 Mio. USD gesicherte Finanzierung durch ein Pre-Export-Finance-Darlehen, mit einer anfänglichen Auszahlung von bis zu 5,0 Mio. USD und einer optionalen 2,5 Mio. USD, die bis März 2026 verfügbar ist.
Die Darlehenskonditionen sehen einen Zinssatz von SOFR + 5% sowie eine sechsmonatige Karenzzeit nach der ersten Auszahlung vor. Außerdem erhält Glencore das Recht, 100% der Zink- und Bleikonzentratlieferungen der Mallay-Mine mit Silber als Nebenprodukt zu kaufen. Die Mittel sollen den unterirdischen Ausbau, die Aufrüstung der Aufbereitungsanlage und das Betriebskapital zur Erreichung der kommerziellen Produktion finanzieren.
- Secured up to US$7.5 million in funding for mine restart
- Guaranteed purchaser for 100% of mine output through Glencore offtake agreement
- Flexible loan terms with 6-month grace period
- Exposure to future upside on silver and metals prices
- Additional debt burden with SOFR + 5% interest rate
- Loan requires security against concentrates sales
Toronto, Ontario--(Newsfile Corp. - August 20, 2025) - Excellon Resources Inc. (TSXV: EXN) (OTC Pink: EXNRF) (FSE: E4X2) ("Excellon" or the "Company") is pleased to announce the closing of its offtake and financing agreement (the "Agreement") with subsidiaries of Glencore plc ("Glencore") to support the restart of the past-producing Mallay Silver Mine ("Mallay") in Peru.
Highlights:
Facility Size: Up to US
$7.5 million in secured funding, structured as a Pre-Export Finance loan, with an initial drawdown amount of up to US$5.0 million and an optional second amount of US$2.5 million available until March 2026.Interest Rate: SOFR +
5% .Repayment Terms: Six months grace period following initial drawdown, with monthly prepayment through to 2027.
Security: Loan secured against concentrates sales and other various guarantees.
The proceeds of the Facility will be used to fund the restart of the Mallay Mine, including underground development, mill upgrades and working capital to achieve commercial production.
Shawn Howarth, President and CEO, commented, "The closing of our agreement with Glencore marks a major milestone in our journey to return Excellon to silver production. With additional and flexible funding now secured, we continue to execute on our restart plan at Mallay — a project with exceptional infrastructure and near-term cash flow potential."
The associated concentrates 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 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, and the Tres Cerros Gold/Silver Exploration Property in Peru, 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 the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the polices of the TSXV) has reviewed the adequacy or accuracy of this news 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 include, but are not limited to, statements regarding the timing, scope and success of the restart of the Mallay Mine; the timing and advancement of underground rehabilitation; the Company's path back to production and beyond; 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 restart of the Mallay Mine; risks related to rehabilitation, 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 inability of the Company to complete the interest payment in Common Shares on the terms proposed or at all; the inability of the Company to complete the Debt Settlement on the terms proposed or at all; 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.
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