Excellon upsizes Sprott-backed financing to $6.5 million
Excellon Resources Inc. [EXN-TSX, E4X2-FSE] is upsizing a previously announced brokered private placement that is now expected to raise $6.5 million. That is up from an earlier $5.0 million target.
Excellon is in the process of acquiring the past-producing Mallay Silver Mine and Tres Cerros Gold-Silver Exploration project in Peru. The company is also advancing a portfolio of gold, silver and base metal assets including Kilgore, an advanced gold exploration project in Idaho, and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and little modern exploration.
The company said it intends to use the net proceeds from the upsized offering to advance development of the Mallay Mine. The upsized offering consists of the sale of 61.9 million units priced at 10.5 cents per unit. Eric Sprott has made a lead order to subscribe for units under the offering.
Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase on common share for 15 cents per warrant share at any time before the date which is 36 months after the closing date. The company said the agents will have the option to sell up to an additional 9.5 million units at the offering price, a move that could generate an additional $1.0 million in gross proceeds. That option is exercisable in full or in part, for 48 hours prior to closing, which is expected to occur on May 2, 2025.
In a press release on April 2, 2025, Excellon said it is making good progress toward securing offtake-linked financing for the restart of operations at the past-producing Mallay Silver Mine.
The company said it had received several non-binding proposals from leading trading houses for zinc and lead concentrate offtake agreements. Each proposal includes an associated prepayment or structured finance facility to provide near-term financing for restart activities.
“The interest we’ve received from globally recognized trading partners for Mallay concentrate validates our strategy to restart Mallay and reinforces our confidence in the project’s potential,’’ said Excellon President and CEO Shawn Howarth. “These proposals provide competitive terms and flexible structures to meet our capital requirements whole forming long-term commercial partnerships,’’ he said. “We’re highly encouraged by the momentum and expect to finalize a preferred financing solution in the near term.’’
The Mallay Mine is located in the Lima region of central Peru. From 2012 to 2018, the mine produced 6.0 million ounces of silver, 45 million pounds of zinc and 35 million pounds of lead. The flotation plant has a processing capacity of 600 tones per day. It is currently on care and maintenance, while the company evaluates its restart potential. On Wednesday, Excellon shares were unchanged at 13.5 cents. The shares trade in a 52-week range of 22 cents and $0.08.