Business
Excellon Resources Closes $17.9 Million Financing
TORONTO, Aug. 4, 2020 /CNW/ - Excellon Resources Inc. (TSX: EXN) (TSX: EXN.WT) (OTC: EXLLF) and (FRA: E4X1) ("Excellon" or the "Company") is pleased to announce
About this update from Excellon Resources Inc.
[{"type":"text","content":" TORONTO, Aug. 4, 2020 /CNW/ - Excellon Resources Inc. (TSX: EXN) (TSX: EXN.WT) (OTC: EXLLF) and (FRA: E4X1) (\"Excellon\" or the \"Company\") is pleased to announce the closing of the previously announced private placement (the \"Financing\") of secured convertible debentures (the \"Debentures\") for total proceeds of C$17,910,000. The proceeds will be used for (i) repayment of the US$6 million bridge loan with Sprott Private Resource Lending II (Collector), LP entered into in connection with the acquisition of Otis Gold Corp., (ii) exploration on the Silver City, Platosa and Kilgore projects and (iii) general corporate purposes. All amounts are in Canadian dollars, unless otherwise indicated. \"We had incredible support for this financing from existing, long-term shareholders and we look forward to delivering returns in this developing precious metals bull market,\" stated Brendan Cahill, President and CEO. \"The additional funds will be put to immediate use drilling our Silver City Project in Saxony, Germany and our exciting Jaboncillo and PDN targets at Platosa in Mexico, with exploration at Kilgore in Idaho ramping up over the coming months. We expect to release updates on each of these projects in the coming weeks.\" The Debentures have a term of 36-months and are convertible into common shares (\"Common Shares\") of the Company prior to maturity at a conversion price of $1.06 per Common Share. The Debentures bear interest at an annual rate of 5.75%, payable in cash semi-annually. Interest on the Debentures may alternatively be paid in Common Shares of the Company at the Company's option based on (i) the 10-day volume-weighted average price of the Common Shares prior to the payment date and (ii) an effective annual rate of 10%. The Debentures are secured against the Company's assets in Mexico. On or after the second anniversary of the date of issue and prior to maturity, the Company may accelerate the conversion of the entire issuance of Debentures, provided that the 20-day VWAP of the Common Shares on or after such 24-month anniversary is equal to greater than $2.50, upon the Company providing the Debenture-holders with 30-calendar days prior written notice of such accelerated conversion. The purchasers of the Debentures were also issued 281 Common Share purchase warrants (\...