Excellon Resources Inc. [EXN-TSX, E4X2-FSE] has announced a brokered private placement that is expected to raise up to $8 million. The company said it intends to use the net proceeds of the offering to advance development of the Mallay Silver Mine in Peru.
The company said the offering will consist of up to 40 million common shares priced at 20 cents per offered share. The agents have been granted the option to sell up to an additional 5.0 million offered shares at the offering price, potentially raising up to an additional $1.0 million. That option can be exercised in whole, or in part for up to 48 hours prior to closing which is expected to occur on September 9, 2025.
Excellon shares rose 2.22% or $0.005 to 23 cents on Tuesday. The shares currently trade in a 52-week range of 39.5 cents and $0.08.
Excellon is focused on the potential restart of the Mallay mine. The Mallay Mine is located in the Lima region of central Peru. From 2012 to 2018, the mine produced 6.0 million ounces of silver, 45 million pounds of zinc and 35 million pounds of lead. The flotation plant has a processing capacity of 600 tones per day. It is currently on care and maintenance, while the company evaluates its restart potential.
The company recently said mine rehabilitation is progressing well. It said an experienced underground mining contractor has commenced rehabilitation of the 4150 and 4090 levels and is advancing 70 to 80 metres of rehabilitation per day. This pace keeps the company on schedule to complete the mine rehabilitation activities within the next three to four months, consistent with prior guidance.
Once rehabilitation is complete, the company said it plans to assess the mine restart within previously developed zones where mineralized material is readily accessible and do not require de-watering. “This restart approach allows us to leverage a fully permitted, operational 600 tonne-per-day processing facility which reflects more than US$115 million in historical investment,’’ the company said in a press release. “With all necessary permits in place, we are targeting a ramp-up to nameplate capacity by the second quarter of 2026,’’ the company said.
Meanwhile, the company is also advancing a portfolio of gold, silver and base metal assets including the Tres Cerros gold/silver property in Peru; Kilgore, an advanced gold exploration project in Idaho, and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and little modern exploration.
The Tres Cerros exploration property lies approximately six kilometres northwest of Mallay. “We believe this project could host a significant bulk-tonnage gold-silver system and are committed to advancing it in a responsible manner,” the company said.
