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TORONTO, Aug. 6, 2019 /CNW/ - Excellon Resources Inc.
(TSX:EXN) ("Excellon" or the "Company") is pleased to
announce that it has entered into an agreement with Cormark
Securities Inc. ("Cormark") as sole bookrunner and lead
underwriter, on its own behalf and on behalf of a syndicate of
underwriters, pursuant to which the Underwriters have agreed to
purchase, on a bought deal basis, 9,500,000 units of the Company
(the "Units") at a price of $1.06 per
Unit for gross proceeds to the Company of approximately
$10 million (the "Offering"). Each
Unit will consist of one common share in the capital of the Company
(each a "Common Share") and one-half of one common share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant shall
entitle the holder to acquire an additional Common Share at a price
of $1.40 for a period of 24 months
following the closing of the Offering.
The Company has agreed to grant the Underwriters an
over-allotment option (the "Over-Allotment Option") to increase the
size of the Offering by up to an additional 15%, such option being
exercisable in whole or in part at any time prior to the date that
is 30 days after the closing of the Offering, to cover
over-allotments, if any, and for market stabilization purposes. In
the event that the Over-Allotment Option is exercised in full, the
aggregate gross proceeds of the Offering to Excellon will be
approximately $11.5 million.
The Company intends to use the net proceeds of the Offering to
fund exploration and capital expenditures at the Company's Platosa
Project in Durango, Mexico and
Evolución Property in Zacatecas,
Mexico, for corporate development and for general corporate
purposes.
The Units will be offered by way of short form prospectus in
each of the provinces of Canada,
except Québec, pursuant to National Instrument 44-101 – Short
Form Prospectus Distributions. The Units will not be offered or
sold in the United States except
under Rule 144A or Regulation D or in such other manner as to not
require registration under the United States Securities Act of
1933, as amended.
The Offering is scheduled to close on or before August 27, 2019 and is subject to certain
conditions including, but not limited to, receipt of all regulatory
approvals, including the approval of the Toronto Stock Exchange and
the applicable securities regulatory authorities.
The securities offered in the Offering have not been, and will
not be, registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Excellon
Excellon's 100%-owned Platosa Mine has been Mexico's highest-grade silver mine since
production commenced in 2005. The Company is focused on optimizing
Platosa's cost and production profile, discovering further
high-grade silver and carbonate replacement deposit (CRD)
mineralization on the 21,000 hectare Platosa Project and epithermal
silver mineralization on the 100%-owned 45,000 hectare Evolución
Property, and capitalizing on current market conditions by
acquiring undervalued projects in the Americas.
Forward-Looking Statements
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 and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Such
forward-looking statements include, without limitation, statements
regarding the closing of the Offering, the timing of the closing of
the Offering, the use of proceeds from the Offering, the receipt of
regulatory approvals, the exercise of the Over-Allotment Option and
future results of operations, performance and achievements of the
Company. Although the Company believes that such forward-looking
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 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. This press
release is not, and is not to be construed in any way as, an offer
or recommendation to buy or sell securities in Canada or in the
United States.
Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual events, results and/or developments may
differ materially from those in the forward-looking statements.
Readers should not place undue reliance on the Company's
forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to
time by the Company or on its behalf, except in accordance with
applicable securities laws.
SOURCE Excellon Resources Inc.