TORONTO, June 9, 2022 /CNW/ – Excellon Resources Inc. (TSX: EXN) (NYSE: EXN) (FRA: E4X2) (“Excellon” or the “Company”) is pleased to announce the extension to September 30, 2025 of the 164 km2 Bräunsdorf Exploration Permit (the “Bräunsdorf Permit”), making up part of the 340 km2 Silver City project in Saxony, Germany.
“The Bräunsdorf license was the first part of our Silver City project and has been central to our exploration efforts since we arrived in Saxony in the third quarter of 2019,” said Brendan Cahill, President and CEO. “Our drilling programs on the license have outlined a high-grade epithermal silver system over tens of kilometres, which remains open with multiple targets yet to be followed and the new licenses we acquired last year have yet to be completed. We also continue to be impressed with the jurisdiction’s regulatory efficiency and remain committed to Saxony for the foreseeable future.Finally, Globex Mining has been an excellent partner on the Bräunsdorf license and we look forward to acquiring a stake 100% in the license in the third quarter of this year.”
Excellon acquires a 100% interest in the license from Bräunsdorf pursuant to an option agreement (the “Option Agreement”) dated September 23, 2019 (as amended) between the Company’s subsidiary, Saxony Silver Corp., and Globex Mining Enterprises Inc. (TSX: GMX, OTCQX: GLBXF and FRA: G1MN) (“Globex”). The other components of consideration under the option agreement are as follows:
Paid C$200,000 and issue ordinary shares of Excellon with a value equivalent to CA$625,000 based on the volume weighted average price (VWAP) over 5 days at the latest September 23, 2022; and
Grant Globex a gross metal royalty on the Bräunsdorf license equal to 3% of precious metals and 2.5% of other metals, which may be reduced to 2% and 1.5%, respectively, with a $1,500,000 Payment.
Excellon has also agreed to make a single C$300,000 payment upon release of an inaugural resource on the Bräunsdorf license and a one-time payment of C$700,000 to the realization of the commercial production of the Bräunsdorf license.
The 340 km2 The Silver City project is located within an extensive high-grade epithermal system and has a long history of mining dating back to the 12th century, with no modern exploration for precious metals.
Excellon’s vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of our people, communities and shareholders. The Company is advancing a precious metals growth pipeline that includes: Platosa, a high-grade silver mine producing in Mexico since 2005; Kilgorean advanced gold exploration project Idaho with a strong economy and significant growth and discovery potential; and an option on Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration. The Company also aims to continue to capitalize on current market conditions by acquiring undervalued projects.
Additional details of Excellon’s properties are available at www.excellonresources.com.
The Toronto Stock Exchange has not reviewed and accepts no responsibility for the adequacy or accuracy of the contents of this press release, which was prepared by management. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. These statements include, but are not limited to, mineral resource estimates, future operating results, performance and achievements of the Company, including potential strategic transactions, timing, content, cost and results. proposed work programs, discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, processes and potential rates of mineral recovery, business and financing plans, business trends and revenue from future operations. Although the Company believes these statements to be reasonable, it cannot guarantee that these expectations will prove to be correct. Forward-looking statements are generally identified by words such as: believe, expect, anticipate, intend, estimate, assume and similar expressions, or are those which by their nature refer to future events. The Company cautions investors that the Company’s forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, but not limited thereto, variations in the nature, quality and quantity of mineral deposits that may be located, significant downward variations in the market price of the minerals produced, the inability of the Company to obtain permits, consents or authorizations necessary for its activities, to produce minerals from its properties successfully or profitably, to pursue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All the Company’s public information documents are accessible via www.sedar.com and readers are encouraged to consult these documents. This press release is not and should not be construed as an offer to buy or sell securities in the United States.
SOURCE Excellon Resources Inc.
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