Excellon Announces Debenture Restructuring

About this update from Excellon Resources Inc.

[{"type":"text","content":"Excellon Announces Debenture RestructuringToronto, Ontario--(Newsfile Corp. - September 21, 2023) - Excellon Resources Inc. (TSX: EXN) (OTCQB: EXNRF) (FSE: E4X2) (\"Excellon\" or the \"Company\") is pleased to announce that the Company has entered into a binding term sheet with holders (\"Debentureholders\") representing over 662/3% of the principal amount of the outstanding 5.75% secured convertible debentures of the Company (the \"Debentures\") to reduce the outstanding principal amount to C$7.5 million, representing a 58% reduction in principal, and to amend the terms of the remaining Debentures to, among other things, further extend the maturity date to August 31, 2026.HighlightsOutstanding principal amount of the Debentures to C$7.5 million, representing a reduction of C$10.4 million.In exchange for C$10.4 million aggregate principal amount of the Debentures, Excellon to pay C$3.5 million in equity, 25% interest in Silver City Project, plus additional non-dilutive contingency and royalty payments.Structure aligns investment return to Debentureholders through both equity and asset value growth, a benefit to all stakeholders.Maturity date of remaining Debentures extended to August 31, 2026.No cash repayment or outlay required to restructure the Debentures.Interest is payable at an annual rate of 6.5% in cash or 10% in shares, at the Company's option.Provides alignment with shareholders around future equity growth.Shawn Howarth, President and CEO of Excellon, commented, \"We are pleased to reach an agreement with Debentureholders. The restructuring announced today reduces debt with zero cash outlay and minimal equity dilution. We also thank Debentureholders, who have invested significant capital to support Excellon and continue to believe in the long-term potential of the Company.\"Mr. Howarth added, \"Priorities in the Debenture Repurchase were to de-lever the balance sheet, but in a structure that minimizes immediate dilution to Excellon shareholders at current share prices. One third of the Debenture Repurchase consideration is equity of Excellon with the remainder of consideration on successful milestone achievements and advancing the asset portfolio. Current Excellon shareholders will continue to benefit in upside growth with reduced up-front dilution.\"Debenture RestructuringThe Company has entered into a binding term sh...

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