TORONTO, Sept. 24, 2019
/CNW/ - Excellon Resources Inc. (TSX:EXN, EXN.WT, OTC:EXLLF and
FRA:E4X1) ("Excellon" or the "Company") is pleased to
announce that it has entered into an agreement (the "Agreement")
with Globex Mining Enterprises Inc. (TSX:GMX, OTCQX:GLBXF and
FRA:G1MN) ("Globex") for the option (the "Option") to acquire a
100% interest in the Silver City Project (the Bräunsdorf
exploration license), a 164 km2 silver district in
Saxony, Germany. The Silver City
Project is located within a large, high-grade epithermal
system and has a long history of mining dating back to the
12th century, with no modern exploration for precious
metals.
Highlights of the Silver City Project
- First mover advantage in the historic mining district of
Bräunsdorf, which boasts 750-year history of silver mining,
immediately west of Freiberg (known as Silberne Stadt or
Silver City);
- Bräunsdorf exploration license (the Silver City Project) totals
164 km2 encompassing 36 km of strike, including six
major historic silver mine camps, five minor camps and other
prospects, with no modern exploration completed to date;
- Historically reported veins ranged from 0.5 to 10 metres width,
with grades of over 3,500 g/t Ag and no assaying for gold or zinc
available at the time;
- Petrographic and fluid inclusion studies recently conducted by
the Mineral Systems Analysis Group at the Freiberg University of
Mining and Technology suggest a productive depth for precious
metals from 50 to 450 metres below surface;
- Additional information on the project is available on
Excellon's website at:
http://www.excellonresources.com/operations/silver-city/snapshot/.
"This low-risk, low-cost option gives us first mover advantage
in a large high-grade epithermal silver district," stated
Brendan Cahill, President and CEO.
"With historic, high-grade mines seldom reaching depths of 200
metres, Silver City may be akin to turning the clock back 100 years
on the Fresnillo trend. This opportunity aligns perfectly with our
focus on exploring large, underexplored properties for high-grade
discoveries on world-class precious metal belts."
Mr. Cahill continued, "Exploration and mining are on the brink
of a renaissance in Saxony and significant talent is readily
available in the broader region. The Freiberg University of Mining
and Technology, the world's oldest mining and metallurgy college,
is within 10 km of the Silver City Project and is actively training
geologists and metallurgists, while the Helmholtz Institute
Freiberg is developing high technology solutions for the mining
industry in Germany and
globally."
Silver City Project
The Silver City Project encompasses a 36 km SW-NE strike by 1 to
5 km wide epithermal vein system situated west of the city of
Freiberg (30 km southwest of Dresden). The immediate exploration license
and surrounding area have a long and rich history of silver mining
with numerous historic mining camps, small mines and prospects,
many of which have only been explored and/or mined to shallow
depths seldom exceeding 200 metres below surface.
Similar to the gold rush in North
America, the silver rush in Europe originated in the ore mountains of
Saxony, which were the source of wealth and power for the Saxon
monarchy. Mining continued from the 12th to the
19th century but ceased when Germany abandoned the silver standard after
the Franco-Prussian war and as the depth of mining operations
became difficult with the methods then being employed. Sporadic
silver mining continued from the 1880's, but ultimately ceased in
1969 due to economic, political and technological limitations.
The district of Freiberg has excellent infrastructure and is
home to the Freiberg University of Mining and Technology (TU
Bergekademie Freiberg)
(https://tu-freiberg.de/en/university/profile), the oldest
university of mining and metallurgy in the world and the Helmholtz
Institute Freiberg ("HIF") (https://www.hzdr.de/db/Cms?pNid=2423),
which specializes in a broad array of innovative mining
technologies. HIF was founded in 2011 by the federal government of
Germany to align the country's
rich mineral history with a new national strategy on raw
materials.
Geology
The Bräunsdorf project is located in the Freiberg district
on the western edge of the Erzgiberge terrain. This terrain is an
erosional window of Variscan basement rocks exposed due to
uplifting of the terrain during the Cenozoic period. A large
number of hydrothermal veins have been emplaced into this terrain.
These veins are typically sub-vertical and host predominantly
silver and base metal rich deposits associated with Permian
magmatic activity. In the Bräunsdorf district in particular,
polymetallic veins are hosted within mica schist units, parallel to
the tectonic contacts along a gneiss unit.
Mining in Germany
There are currently a number of underground mines and projects
active in Germany mining primarily
industrial metals. Saxony is considered the most mining friendly
state in Germany due to its
transparent and collaborative mining law process, with no holding
costs on exploration concessions as long as work is advanced.
Exploration licenses are eligible for 5-year terms and can be
renewed or converted to production licenses during the term or at
the anniversary. Both the Saxon and German governments are
proactively attracting mining investment and research through
affiliations with several technology and mining institutes.
Terms of the Agreement
Under the terms of the Agreement, to exercise the Option and
earn a 100% interest in the Silver City Project, the Company
must:
(i)
|
Pay C$100,000 and
issue 226,837 common shares of the Company ("Common Shares") to
Globex (completed on September 23, 2019);
|
(ii)
|
Pay C$100,000 and
issue Common Shares to Globex equivalent to C$325,000 based on the
5-day volume weighted average price ("VWAP") on or before September
23, 2020;
|
(iii)
|
Pay C$100,000 and
issue Common Shares to Globex equivalent to C$425,000 based on the
5-day VWAP on or before September 23, 2021;
|
(iv)
|
Pay $200,000 and
issue Common Shares to Globex equivalent to C$625,000 based on the
5-day VWAP on or before September 23, 2022; and
|
(v)
|
Upon completion of
the payments and issuances set out above, grant Globex a gross
metals royalty on the exploration or production license on the
Silver City Project of 3.0% for precious metals and 2.5% for other
metals, which may be reduced to 2% and 1.5%, respectively, upon a
payment of US$1,500,000.
|
The total value of cash and share over the three-year term is
C$500,000 and C$1.6 million, respectively. The Company may
accelerate any of the payments, issuances or the royalty grant at
any time during the term of the option. Additionally, the Company
may terminate the option at any time provided that the payments and
issuances described in (i) and (ii), above, have been completed and
the work commitments under the exploration license in respect of
the first year of the option have been satisfied.
In addition, the Company has agreed to make: (i) a one-time
payment of C$300,000 following the
announcement of a maiden resource on the Silver City Project and
(ii) a one-time payment of C$700,000
upon the achievement of commercial production from the Silver City
Project.
The listing of the common shares issuable to Globex pursuant to
the Agreement has been conditionally approved by the Toronto Stock
Exchange.
Qualified Persons
Mr. Ben Pullinger, P. Geo.,
Senior Vice President Geology, has acted as the Qualified Person,
as defined in NI 43-101, with respect to the disclosure of the
scientific and technical information relating to exploration
results contained in this press release.
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. The Company also
holds an option on the 164 km2 Silver City Project in
Saxony, Germany, a high-grade
epithermal silver district with 750 years of mining history and no
modern exploration.
Additional details on the Platosa Mine and the rest of
Excellon's exploration properties are available at
www.excellonresources.com.
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 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, 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 September
7, 2018 NI 43-101 technical report prepared by SRK
Consulting (Canada) 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.