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 license (the
"Bräunsdorf License"), composing part of the 340 km2
Silver City Project in Saxony, Germany.
"The Bräunsdorf License was the first piece of our Silver City
Project and has been the primary focus of our exploration efforts
since we arrived in Saxony in Q3 2019," stated Brendan Cahill, President & CEO. "Our
drilling programs on the license have delineated a high-grade
epithermal silver system over tens of kilometres, that remains open
with multiple targets yet to be followed up on and the new licenses
we acquired last year yet to be explored. We also continue to be
impressed by the regulatory efficiency of the jurisdiction and
remain committed to Saxony for the foreseeable future. Finally,
Globex Mining has been a great partner on the Bräunsdorf License
and we look forward to earning a 100% interest in the license in Q3
this year."
Excellon is earning into a 100% interest in the Bräunsdorf
License 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 remaining components of consideration under the
Option Agreement are:
- Paying C$200,000 and issuing
common shares of Excellon with a value equivalent to C$625,000 based on the 5-day volume-weighted
average price (VWAP) on or before September
23, 2022; and
- Granting Globex a gross metals royalty on the Bräunsdorf
License equal to 3% of precious metals and 2.5% of other metals,
which can be reduced to 2% and 1.5%, respectively, with a
US$1,500,000 payment.
Excellon has also agreed to make a one-time C$300,000 payment upon the release of a maiden
resource on the Bräunsdorf License and a one-time payment of
C$700,000 upon the achievement of
commercial production from the Bräunsdorf License.
The 340 km2 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-day
exploration for precious metals.
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,
a high-grade silver mine producing in Mexico since 2005; Kilgore, an advanced gold exploration 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, mineral
resources estimates, the future results of operations, performance
and achievements of the Company, including potential strategic
transactions, 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.
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.