Excellon Resources Completes Acquisition of Mallay Silver Mine in Peru

Excellon Resources Inc. has finalized its acquisition of Minera CRC SAC, which owns the Mallay Silver Mine in Peru. The mine has prior production history with over 18 million silver-equivalent ounces and comes equipped with infrastructure. Excellon plans immediate rehabilitation to restart production in the next few months, while they explore additional resources on the adjacent Tres Cerros property, enhancing their foothold in silver production.

Excellon Resources Inc., a company listed on the TSX and OTCQB, has just finalized its acquisition of Minera CRC SAC, which owns the Mallay Silver Mine in Peru. This mine is notable for its past productivity, known as a silver-lead-zinc operation, and it comes complete with necessary infrastructure like a flotation plant and grid power access.

From 2012 to 2018, Buenaventura operated the Mallay Mine, achieving quite a remarkable output—over 18 million silver-equivalent ounces. Alongside this acquisition, Excellon also obtained the Tres Cerros gold-silver exploration property, covering about 2,000 hectares characterized by high-sulphidation mineralization, which certainly adds to its strategic value.

The company plans to engage in both near-mine exploration at Mallay and surface mapping at Tres Cerros. Excellon’s CEO, Shawn Howarth, is optimistic following a site visit to Mallay. “We are pleased with the condition of the existing infrastructure and the team’s readiness to execute,” he stated, illustrating confidence in the future operations.

Howarth expressed that they expect to complete underground rehabilitation within four months, positioning Excellon for a potential production decision. This acquisition is seen as a pivotal moment for the firm, steering it back towards silver production after a significant hiatus.

Immediate plans for Excellon include mine rehabilitation and conducting technical studies to aid in a restart decision within three to six months. The company is also working on a mineral resource estimate based on historical data while planning to reaccess underground levels and undertake drilling to enhance known mineralization.

The acquisition involves a complex agreement framework with Adar Mining Corp., Premier Silver Corp., and 1267104 B.C. Ltd. In terms of financial breakdown, it included around $2.2 million in cash, the issuance of 17.8 million common shares, and the assumption of existing obligations. Furthermore, the deal includes several royalty and streaming agreements, alongside a back-in rights agreement concerning the Tres Cerros property.

In summary, Excellon Resources has successfully acquired the Mallay Silver Mine and Tres Cerros exploration property, marking a significant step for the company. With plans for immediate rehabilitation and exploration, they aim for a possible production restart in a near timeframe. This acquisition signals Excellon’s commitment to reinvigorating silver production, leveraging existing infrastructure and previous operational successes.

Original Source: ca.proactiveinvestors.com