Excellon Advances Offtake Financing for Mallay Mine Restart
Excellon Resources (TSX: EXN) reports progress in securing offtake-linked financing for restarting operations at the Mallay Silver Mine in Peru. The company has received multiple non-binding proposals from trading houses for zinc and lead concentrate offtake agreements, including prepayment facilities.
The proposed financing terms include:
- Facilities ranging from US$4 to US$6 million
- Up to 30-month tenors with grace periods during ramp-up
- Annual interest rates from SOFR + 5% to 7%
The proposals require satisfactory due diligence and completion of Excellon's planned acquisition of Minera CRC, Mallay's owner. The offtake agreements would cover 100% of production over multiple years. The company aims to close the Minera CRC acquisition and finalize offtake discussions in April.
Excellon Resources (TSX: EXN) riporta progressi nel garantire finanziamenti legati agli accordi di vendita per la ripresa delle operazioni presso la Mallay Silver Mine in Perù. L'azienda ha ricevuto più proposte non vincolanti da case di trading per accordi di vendita di concentrati di zinco e piombo, comprese strutture di pagamento anticipato.
I termini di finanziamento proposti includono:
- Strutture comprese tra 4 a 6 milioni di dollari USA
- Scadenze fino a 30 mesi con periodi di grazia durante la fase di avvio
- Tassi di interesse annuali dal SOFR + 5% al 7%
Le proposte richiedono una due diligence soddisfacente e il completamento dell'acquisizione pianificata da parte di Excellon di Minera CRC, proprietaria di Mallay. Gli accordi di vendita coprirebbero il 100% della produzione per diversi anni. L'azienda punta a chiudere l'acquisizione di Minera CRC e finalizzare le discussioni sugli accordi di vendita ad aprile.
Excellon Resources (TSX: EXN) informa sobre los avances en la obtención de financiamiento vinculado a acuerdos de compra para reiniciar las operaciones en la Mallay Silver Mine en Perú. La compañía ha recibido múltiples propuestas no vinculantes de casas de comercio para acuerdos de compra de concentrados de zinc y plomo, incluidas facilidades de pago anticipado.
Los términos de financiamiento propuestos incluyen:
- Facilidades que oscilan entre 4 y 6 millones de dólares estadounidenses
- Plazos de hasta 30 meses con períodos de gracia durante la fase de inicio
- Tasas de interés anuales desde SOFR + 5% hasta 7%
Las propuestas requieren una debida diligencia satisfactoria y la finalización de la adquisición planificada por parte de Excellon de Minera CRC, propietaria de Mallay. Los acuerdos de compra cubrirían el 100% de la producción durante varios años. La compañía espera cerrar la adquisición de Minera CRC y finalizar las discusiones sobre los acuerdos de compra en abril.
Excellon Resources (TSX: EXN)은 페루의 Mallay Silver Mine에서 운영 재개를 위한 구매 연계 자금 조달을 확보하는 데 진전을 보고했습니다. 이 회사는 아연 및 납 농축물 구매 계약을 위한 여러 비구속 제안을 거래소로부터 받았으며, 선불 시설도 포함되어 있습니다.
제안된 자금 조달 조건은 다음과 같습니다:
- 400만 달러에서 600만 달러 사이의 시설
- 시작 단계 동안의 유예 기간이 포함된 최대 30개월의 만기
- SOFR + 5%에서 7%까지의 연간 이자율
제안은 만족스러운 실사를 요구하며, Excellon이 Mallay의 소유자인 Minera CRC의 계획된 인수를 완료해야 합니다. 구매 계약은 여러 해에 걸쳐 생산의 100%를 커버할 것입니다. 이 회사는 4월에 Minera CRC 인수를 마무리하고 구매 논의를 마무리할 계획입니다.
Excellon Resources (TSX: EXN) fait état de progrès dans l'obtention de financements liés à des accords d'achat pour relancer les opérations de la Mallay Silver Mine au Pérou. L'entreprise a reçu plusieurs propositions non contraignantes de maisons de négoce pour des accords d'achat de concentrés de zinc et de plomb, y compris des facilités de prépaiement.
Les conditions de financement proposées comprennent:
- Des facilités allant de 4 à 6 millions de dollars américains
- Des échéances allant jusqu'à 30 mois avec des périodes de grâce pendant la phase de montée en charge
- Des taux d'intérêt annuels allant de SOFR + 5% à 7%
Les propositions nécessitent une due diligence satisfaisante et l'achèvement de l'acquisition prévue par Excellon de Minera CRC, propriétaire de Mallay. Les accords d'achat couvriraient 100 % de la production sur plusieurs années. L'entreprise vise à finaliser l'acquisition de Minera CRC et à conclure les discussions sur les accords d'achat en avril.
Excellon Resources (TSX: EXN) berichtet über Fortschritte bei der Sicherstellung von abnahmegebundenen Finanzierungen zur Wiederaufnahme der Betriebe in der Mallay Silver Mine in Peru. Das Unternehmen hat mehrere unverbindliche Angebote von Handelsunternehmen für Abnahmeverträge für Zink- und Blei-Konzentrat erhalten, einschließlich Vorauszahlungsvereinbarungen.
Die vorgeschlagenen Finanzierungsbedingungen umfassen:
- Einrichtungen im Bereich von 4 bis 6 Millionen US-Dollar
- Bis zu 30 Monate Laufzeiten mit Karenzzeiten während der Hochlaufphase
- Jährliche Zinssätze von SOFR + 5% bis 7%
Die Angebote erfordern eine zufriedenstellende Due Diligence und den Abschluss von Excellons geplanter Übernahme von Minera CRC, dem Eigentümer von Mallay. Die Abnahmeverträge würden 100% der Produktion über mehrere Jahre abdecken. Das Unternehmen strebt an, die Übernahme von Minera CRC abzuschließen und die Abnahmegespräche im April zu finalisieren.
- Multiple financing proposals received from leading trading houses
- Competitive financing terms with facilities up to US$6 million
- Flexible payment structure with grace periods during ramp-up
- 100% production offtake agreements secured for multiple years
- Proposals are non-binding and subject to due diligence
- Additional capital may be required beyond the US$4-6 million facility
- Financing terms include interest rate premium over SOFR benchmark
Toronto, Ontario--(Newsfile Corp. - April 2, 2025) - Excellon Resources Inc. (TSX: EXN) (FSE: E4X2) ("Excellon" or the "Company") is pleased to report good progress toward securing offtake-linked financing for the restart of operations at the past-producing Mallay Silver Mine ("Mallay") in Peru.
Excellon has received several non-binding proposals from leading trading houses for zinc and lead concentrate offtake agreements. Each proposal includes an associated prepayment or structured finance facility to provide near-term funding for restart activities at Mallay.
The proposals received contemplate:
Financing facilities ranging from US
$4 t o US$6 million .Tenors of up to 30 months, including grace periods during ramp-up.
Annual interest rates range from SOFR* +
5% to7% .
* Secured Overnight Financing Rate
All proposals are subject to customary conditions precedent, including satisfactory due diligence and completion of the Company's previously announced acquisition of Minera CRC S.A.C. ("Minera CRC"), the owner of Mallay. Offtake terms include multi-year commitments for
Shawn Howarth, President and CEO commented: "The interest we've received from globally recognized trading partners for Mallay concentrate validates our strategy to restart Mallay and reinforces our confidence in the project's potential. These proposals provide competitive terms and flexible structures to meet our capital requirements while forming long-term commercial partnerships. We're highly encouraged by the momentum and expect to finalize a preferred financing solution in the near term."
Excellon aims to close the acquisition of Minera CRC in April. The Company expects to conclude offtake discussions coincident with closing of the acquisition.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
info@excellonresources.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, contained, referenced or incorporated by reference in this news release constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as: "actively", "advance", "anticipated", "assess", "believe", "cause", "commence", "completion", "conditions", "consideration", "continues", "development", "due course", "expectation", "exploration", "extend", "extension", "flexibility", "focused", "forward", "further", "future", "if", "implement", "liquidity", "looking", "maturity", "may", "negotiations", "occur", "opportunities", "options", "outcome", "outstanding", "potential", "providing", "reach", "restructuring", "risk", "subject to", "to be", "update", "vision", "waive", "when", "will", and "would", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, to, will, would (or not) be achieved, occur, provide, result, complete or support in the future or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include statements regarding the structure and terms of the offtake-linked financing; the timing and ability of the Company to complete the acquisition; the timing and ability of the Company to conclude offtake discussions coincident with closing of the acquisition; the ability of the company to close an offtake finance facility based on indicative terms including size of financing facility, tenor of financing facility and annual interest rate; the timing and ability of the Company to complete additional financing transactions; and the ability of the Company to restart production at the Mallay Mine and the timing thereof. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the inability of the Company to complete the Acquisition on the terms proposed or at all, the inability of the Company to receive necessary regulatory approvals, termination of the Agreement; failure of the Company to complete additional financing transactions on the terms proposed or at all; the inability to complete a feasibility study which recommends a production decision, the "Risk Factors" in the Company's annual information form dated March 31, 2025 (the "2024 AIF"), and the risks, uncertainties, contingencies and other factors identified in the Company's Management's Discussion and Analysis, and accompanying financial statements, for the year ended December 31, 2024, and the Company's other applicable public disclosure (collectively, "Company Disclosure"). The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the 2024 AIF and the other Company Disclosure. The forward-looking statements referenced or contained in this news release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the other Company Disclosure. Forward-looking statements contained herein are made as of the date of this news release (or as otherwise expressly specified) and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable laws.
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FAQ
What financing terms are being offered for EXNRF's Mallay Mine restart?
When does EXNRF expect to close the Mallay Mine acquisition?
What percentage of Mallay Mine's production is covered in the offtake proposals?
What conditions must be met for EXNRF's Mallay Mine financing to proceed?
