Business
Excellon Announces Sale of Interest in Non-Core Oakley Project and Provides Corporate Update
Sells Interest in Oakley Project for US$1 Million Cash Update on Convertible Debenture Restruct...
About this update from Excellon Resources Inc.
[{"type":"text","content":"Excellon Announces Sale of Interest in Non-Core Oakley Project and Provides Corporate UpdateSells Interest in Oakley Project for US$1 Million Cash Update on Convertible Debenture Restructuring and Asset PortfolioToronto, Ontario--(Newsfile Corp. - August 30, 2023) - Excellon Resources Inc. (TSX: EXN) (OTCQB: EXNRF) (FSE: E4X2) (\"Excellon\" or the \"Company\") is pleased to announce that Excellon Idaho Gold Inc. (\"Excellon Idaho\"), a wholly-owned subsidiary of Excellon, has entered into a definitive agreement (the \"Purchase Agreement\") with Centerra (U.S.) Inc. (\"Centerra\"), a wholly-owned subsidiary of Centerra Gold Inc. to sell Excellon's remaining minority interest in the Oakley Project (\"Oakley\") for US$1 million in cash.HighlightsLiquidity update:Sale of Oakley will provide Excellon with US$1 million in cash.Excellon expects to arrange an additional up to US$1 million in liquidity from non-dilutive sources, targeting early Q4 2023.Debenture restructuring:Continuing discussions with debentureholders on a potential restructuring, repricing and extension of existing convertible debentures.Excellon asset portfolio update:Oakley Project: Successful monetization through sale of remaining minority interest to Centerra.Kilgore Project: Update on 2022 drill results in Q3 2023 and reassess exploration program for 2024.Silver City: Creation of a new Europe-focused precious and base metals explorer, leading with the 340 km2 Silver City land package, one of the largest mineral tenures in Saxony, Germany.Mexico Operations: Exploring strategic options following wind-down of Platosa.Shawn Howarth, President and CEO of Excellon, commented, \"First, we are pleased to reach an agreement with Centerra on the sale of Oakley. By selling Oakley, Excellon secures necessary financial liquidity in the short term while mitigating future cash outflows that would otherwise be required to maintain pro forma interest in the project.\"Mr. Howarth added, \"Excellon's future growth is currently underpinned by its core assets, the Kilgore and Silver City projects. The Company sees tremendous value potential in both assets and has invested significant capital and effort to advance these projects, at a time when the Excellon narrative was overshadowed by headwinds at our Mexican operations and the wind-down of Platosa. With Kilgore, we see significantl...