Toronto Stock Exchange - EXN
TORONTO,
April 22, 2013 /PRNewswire/ -
Excellon Resources Inc. (TSX:EXN) ("Excellon" or
the "Company"), Mexico's
highest grade silver producer, is pleased to provide an update on
the status of its agrarian legal suit against the Ejido La Sierrita
(the "Ejido"), which was filed in August
2012 . Excellon sued the Ejido to terminate the surface rights
agreement ("SRA") in respect of the surface rights to 1,100
hectares of exploration ground west of the La Platosa Mine and for
various damages relating to the illegal blockade of the mine last
year. The Ejido also sued for
termination of the SRA one week after being advised of Excellon's
suit.
At a hearing of the Agrarian Court last week,
the Court advised that as both parties wished to terminate the SRA,
Excellon would formally return the surface rights effective
May 9, 2013 pending further
resolutions in respect of ten particular hectares.
"The pending outcome of the Agrarian Court
hearing is as we intended and expected when we filed a suit for
termination of the SRA in August
2012," stated Brendan
Cahill, President and CEO. "This is the best path
forward for our La Platosa Mine, our employees, the residents of
Bermejillo, Mapimi and La
Sierrita, our stakeholders and our shareholders. Every day,
we operate with the full support of our employees, the communities
of Bermejillo and Mapimi and all levels of Mexican
government. The number one priority of our community programs
is to ensure that our actions and investments provide value over
the long-term."
The decision to terminate the SRA (refer to
press release dated September 10,
2012) was driven by the need to limit the risk exposure of
the SRA on La Platosa production capabilities. This decision
has since been solidified by current capital markets conditions and
has become an element of Excellon's business strategy. As the
Company focuses on optimizing high-grade, low-cost production,
increasing cash flow and expanding high-grade and near term
mineable resources at the La Platosa Mine, the termination of the
SRA will result in reduced expenditures of over US$600,000 annually and immediate savings of
approximately US$600,000 during
2013. Excellon also intends to continue its suit against the
Ejido for damages relating to the
illegal blockade of the mine.
Excellon holds approximately 41,000 hectares of
mineral and mining rights at La Platosa. These rights entitle the
Company to explore for and mine minerals at La Platosa and in an
extensive surrounding area. Excellon also owns all surface
rights needed to produce silver from the La Platosa Mine and
conduct further surface and underground exploration for further
high-grade manto mineralization and the CRD/Source of the La
Platosa mantos.
About Excellon
An Evolution in High-Grade Silver: Excellon's
100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead
and zinc by-products making it one of the lowest cash cost silver
mines in the country. The Company is positioning itself to
capitalize on undervalued projects by focusing on increasing La
Platosa's profitable silver production and near-term mineable
resources.
The Toronto Stock Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of
the content of this Press Release, which has been 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. Such statements include, without
limitation, statements regarding the future results of operations,
performance and achievements of the Company, including potential
property acquisitions, the timing, content, cost and results of
proposed work programs, the discovery and delineation of mineral
deposits/resources/reserves, geological interpretations, proposed
production rates, potential mineral recovery processes and rates,
business and financing plans, business trends and future operating
revenues. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Forward-looking statements are typically
identified by words such as: believe, expect, anticipate, intend,
estimate, postulate and similar expressions, or are those, which,
by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are
not guarantees of future results or performance, and that actual
results may differ materially from those in forward looking
statements as a result of various factors, including, but not
limited to, variations in the nature, quality and quantity of any
mineral deposits that may be located, significant downward
variations in the market price of any minerals produced
[particularly silver], the Company's inability to obtain any
necessary permits, consents or authorizations required for its
activities, to produce minerals from its properties successfully or
profitably, to continue its projected growth, to raise the
necessary capital or to be fully able to implement its business
strategies. All of the Company's public disclosure filings may be
accessed via www.sedar.com and readers are urged to review these
materials, including the technical reports filed with respect to
the Company's mineral properties, and particularly the November 22, 2011 NI 43-101-compliant technical
report prepared by Roscoe Postle Associates Inc. with respect to
the Platosa Property. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in
the United States.
SOURCE Excellon Resources Inc.