Excellon Updates Progress on La Platosa Property

About this update from Excellon Resources Inc.

[{"type":"text","content":"\n\n\n\n\n\nToronto Stock Exchange - EXN\n\n\nTORONTO, May 9, 2013 /CNW/ - Excellon Resources Inc. (TSX:EXN) (\"Excellon\" or the \"Company\"), Mexico's highest grade silver producer, is pleased to provide an update on the status of its agrarian legal suit\n against the Ejido La Sierrita (the \"Ejido\"), which was filed in August\n 2012.  Excellon sued the Ejido to terminate the surface rights\n agreement (\"SRA\") in respect of the surface rights to 1,100 hectares of\n exploration ground west of the La Platosa Mine and for various damages\n relating to the illegal blockade of the mine last year.  The Ejido also\n sued for termination of the SRA one week after being advised of\n Excellon's suit.\n\n\nAt a hearing of the Agrarian Court held today, the formal return of the\n 1,100 hectares leased under the SRA was postponed pending further\n negotiations in respect of 10 particular hectares. Excellon and the\n Ejido have agreed to enter into Agrarian Court-supervised negotiations\n for the outright sale of those 10 hectares to the Company.  The next\n hearing date for such negotiations is scheduled for June 27, 2013.\n\n\n\"We remain firmly on track for the best and most economically beneficial\n resolution of this dispute for our La Platosa Mine, our employees, the\n residents of Bermejillo, Mapimi and La Sierrita, our other stakeholders\n and our shareholders,\" stated Brendan Cahill, President and CEO.  \"Our intended solution should ensure the security of the Mine, the\n health, safety and wages of our workers and the most effective,\n long-term investment and development plans with our local neighbours.\" \n\n\nThe decision to terminate the SRA (refer to press release dated\n September 10, 2012) was driven by the need to limit the risk exposure\n of the SRA on La Platosa production capabilities.  This decision has\n since been solidified by current capital markets conditions and has\n become an element of Excellon's business strategy. As the Company\n focuses on optimizing high-grade, low-cost production, increasing cash\n flow and expanding high-grade and near term mineable resources at the\n La Platosa Mine, the termination of the SRA will result in reduced\n expenditures of over US$600,000 annually and near-term savings of\n approximately US$600,000 in 2013.  Excellon also intends to cont...

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