TORONTO, July 22, 2020 /CNW/ - Excellon Resources
Inc. (TSX: EXN) (TSX: EXN.WT) (OTC:
EXLLF) and (FRA: E4X1) ("Excellon" or the
"Company") is pleased to announce that due to significant
demand from existing investors, it has increased to C$15,000,000 the previously announced private
placement (the "Financing") of secured convertible debentures (the
"Debentures"). The proceeds will be used for (i) repayment of
the US$6 million bridge loan with
Sprott Private Resource Lending II (Collector), LP entered into in
connection with the acquisition of Otis Gold Corp., (ii)
exploration on the Silver City, Platosa and Kilgore projects and (iii) general corporate
purposes. References to principal amounts and conversion or
exercise prices in respect of the Financing are in Canadian
dollars.
The Debentures have a term of 36-months and are convertible into
common shares ("Common Shares") of the Company prior to maturity at
a conversion price of $1.06 per
Common Share. The Debentures shall bear interest at an annual rate
of 5.75%, payable in cash semi-annually. Interest on the
Debentures may alternatively be paid in Common Shares of the
Company at the Company's option based on (i) the 10-day
volume-weighted average price of the Common Shares prior to the
payment date and (ii) an effective annual rate of 10%. The
Debentures are secured against the Company's assets in Mexico.
On or after the second anniversary of the date of issue and
prior to maturity, the Company may accelerate the conversion of the
entire issuance of Debentures, provided that the 20-day VWAP of the
Common Shares on or after such 24-month anniversary is equal to
greater than $2.50, upon the Company
providing the Lender with 30-calendar days prior written notice of
such accelerated conversion.
The purchasers of the Debentures shall also be entitled to 281
Common Share purchase Warrants ("Warrants") per $1,000 principal amount of Debentures. Each
Warrant shall be exercisable at a price of $1.15 for a period of three years from the date
of issuance.
The Financing is subject to approval by the Toronto Stock
Exchange and final documentation and is expected to close in the
coming days.
About Excellon
Excellon's vision is to create wealth by realizing strategic
opportunities through discipline and innovation for the benefit of
our employees, communities and shareholders. The Company is
advancing a precious metals growth pipeline that includes: Platosa,
Mexico's highest-grade silver mine
since production commenced in 2005; Kilgore, a high quality gold development
project in Idaho with strong
economics 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 capitalizing on current market conditions by acquiring
undervalued projects.
Additional details on Excellon's 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.