Business
Excellon Provides Corporate Update
Announces Termination of La Negra Acquisition Toronto, Ontario--(Newsfile Corp. - July 20, 2023)...
About this update from Excellon Resources Inc.
[{"type":"text","content":"Excellon Provides Corporate UpdateAnnounces Termination of La Negra AcquisitionToronto, Ontario--(Newsfile Corp. - July 20, 2023) - Excellon Resources Inc. (TSX: EXN) (OTCQB: EXNRF) (FSE: E4X2) (\"Excellon\" or the \"Company\") is providing the following updates:Termination of the La Negra AcquisitionEarlier today, the Company unexpectedly received a notice of termination of the previously announced acquisition of the La Negra project from the seller, Dalu S.à r.l., an entity owned by an investment fund managed by Orion Resource Partners (\"Orion\"). Prior to receipt of the termination notice, the Company had been in discussions with Orion regarding options to advance the acquisition of La Negra to closing, including securing necessary financing1.Consequently, the Company is also announcing the termination of its previously announced subscription receipts offering2.Convertible Debentures and LiquidityThe Company is in advanced discussions with holders of more than 66-2/3% of the principal of its outstanding convertible debentures maturing on July 30, 2023 in the principal amount of C$17.9 million (the \"Debentures\") with a view to extending the maturity date and more broadly restructure the Debentures. The Company has been actively working with the noted debenture holders to reach an agreement on the terms of such extension and restructuring; however, there can be no assurance that such agreement will be reached prior to maturity. Based on discussions to date, the Company anticipates that the terms of any such extension and restructuring will differ from the terms announced on January 9, 20233.In parallel, the Company continues to actively assess various interim financing options as well as other corporate development and strategic opportunities to complement the Company's go-forward strategy, which may include divestitures, mergers or spin-offs of the Company's assets to provide additional near-term liquidity. There can be no assurance that any such interim financing will be secured or any such other opportunities realized.The Company will provide updates to the market on progress in due course if and when developments arise. Extension of Annual Meeting DeadlineThe Company has been granted an extension by the Toronto Stock Exchange to hold its annual meeting of shareholders by no later than September 29, 2023. The Company...