Exploration Company Acquires Mexican Mine

By: Tomas Ronolski - AllPennyStocks.com News

Monday, January 9, 2023

This company is starting off the new year on solid ground, purchasing a permitted, near-term restart opportunity capable of generating significant value in an all share transaction—and is expected to be operationally ready by early 2024.

Exploration company Excellon Resources Inc. (TSX: EXN) (NYSE: EXN) entered into a definitive acquisition agreement to acquire the permitted, past-producing La Negra Mine located in Querétaro State, Mexico from Dalu S. à r.l., an entity owned by an investment fund managed by Orion Resource Partners. Per the company’s press release, the acquisition was for aggregate consideration of US$50 million paid through upfront payments totaling US$20m, payable in common shares of the company, and a further US$30m of deferred, contingent consideration payable in common shares of the company or in cash at the company's option, following the restart of commercial production.

The La Negra is a past producing mine, that has historically produced an average of +3.0 million silver-equivalent ounces annually.

Canadian shares ended Friday trade at $0.485, while NYSE traded shares were $0.3802.

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