Excellon Announces Agreement to Extend Maturity of Convertible Debentures to July 31, 2024
Excellon Announces Agreement to Extend
Maturity of Convertible Debentures to July 31,
2024
Toronto, Ontario--(Newsfile Corp. - July 24, 2023) -
Excellon Resources Inc. (TSX: EXN) (OTCQB:
EXNRF) (FSE: E4X2) ("Excellon"
or the
"Company")
is pleased to announce that it has entered into
a binding agreement with holders of greater than 66
2/3
% of its outstanding 5.75% secured convertible
debentures in the aggregate principal amount of C$17,910,000 (the "
Convertible Debentures
") to
extend the maturity date of the Convertible Debentures by 367 days from July 30, 2023 to July 31, 2024
(the "
Extension
"). The Extension will be implemented pursuant to the terms and conditions of a
supplemental indenture to be entered into between the Company and TSX Trust Company, as trustee
and collateral agent.
In consideration for the Extension, the Company has agreed to an extension fee equal to 6% of the
aggregate principal amount of the Convertible Debentures payable pro rata to the holders of the
Convertible Debentures in common shares in the capital of the Company ("
Common Shares
") priced
at C$0.156 per Common Share.
Shawn Howarth, President and CEO, commented:
"We are pleased to have reached an
agreement, providing critical financial flexibility and one step towards a broader restructuring. It also
reconfirms the commitment by all parties to reach a solution for the future financial health of Excellon."
Completion of the Extension is anticipated to occur on or about July 28, 2023, or such other date as the
parties may determine, and is subject to certain conditions including, but not limited to, the receipt of all
necessary regulatory and securityholder approvals, including the approval of the Toronto Stock
Exchange ("
TSX
") and the approval of the holders of the Convertible Debentures, which is anticipated to
be obtained by way of an instrument in writing executed by holders of the Convertible Debentures
holding Convertible Debentures representing not less than 66
2/3
% of the aggregate principal amount of
the Convertible Debentures. Should the Extension not be completed by July 30, 2023, the holders of the
Convertible Debentures party to the agreement with the Company have agreed that they will approve, or
cause to be approved, the waiver and forbearance of the Company's obligations arising from, or in
connection with, the maturity of the Convertible Debentures on July 30, 2023. The Company will update
the market upon completion of the Extension.
The parties have also agreed to immediately commence further negotiations toward a broader
restructuring of the Convertible Debentures, including a further extension of the maturity date. The
Company will provide further updates when available.
In addition, the same group of holders of Convertible Debentures are in discussions with the Company to
provide bridge financing.
As previously disclosed, in parallel the Company continues to actively assess various other interim
financing and other liquidity options including corporate development and strategic opportunities, which
may include divestitures, mergers or spin-offs of the Company's assets.
As such matters advance, the Company will provide appropriate updates in due course.
About Excellon
Excellon's vision is to realize opportunities through the acquisition of advanced development or
producing assets with further potential to gain from an experienced operational management team for
the benefit of our employees, communities and shareholders. The Company is advancing a portfolio of
silver, base metals and precious metals assets including Kilgore, an advanced gold exploration project
in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of
mining history and no modern exploration.
Additional details on Excellon's properties are available at
www.excellonresources.com
.
For Further Information, Please Contact:
Excellon Resources Inc.
Shawn Howarth, President & Chief Executive Officer
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements, other than statements of historical fact, contained, referenced or incorporated by
reference in this news release constitute "forward-looking statements" and "forward looking
information" (collectively, "
forward-looking statements
") within the meaning of applicable Canadian
and United States securities legislation. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as: "actively", "advance", "anticipated", "assess",
"believe", "cause", "commence", "completion", "conditions", "consideration", "continues",
"development", "due course", "expectation", "exploration", "extend", "extension", "flexibility",
"focused", "forbearance", "forward", "further", "future", "if", "implement", "liquidity", "looking",
"maturity", "may", " "negotiations", "occur", "opportunities", "options", "outcome", "outstanding",
"potential", "providing", "reach", "restructuring", "risk", "subject to", "to be", "update", "vision", "waive",
"when", "will", and "would", or variations of such words, and similar such words, expressions or
statements that certain actions, events or results can, could, may, should, to, will, would (or not) be
achieved, occur, provide, result, complete or support in the future or which, by their nature, refer to
future events. In some cases, forward-looking information may be stated in the present tense, such as
in respect of current matters that may be continuing, or that may have a future impact or effect.
Forward-looking statements include statements regarding the Extension and further restructuring of
the Convertible Debentures (including the terms of and completion the Extension and any further
restructuring and any supplemental indenture agreement in respect thereof, and the number and
pricing of Common Shares to be issued pursuant thereto in respect of related fees or otherwise); the
timing and ability of the Company to complete the Extension; the timing and ability of the Company to
receive necessary regulatory and securityholder approvals (including the approval of the TSX and the
holders of the Convertible Debentures and the form or means thereof); any forbearance and/or waiver,
or other related actions, which may be required to be taken by the Convertible Debenture holders
and/or the indenture trustee and collateral agent and any approvals required therefor; the bridge
financing, other liquidity initiatives and future financial health; interim financing options and any other
corporate development and strategic opportunities (including divestitures, mergers or spin-offs of the
Company's assets) and purpose or outcome thereof (including any complement to go-forward strategy
or other liquidity); Excellon's vision and advancement of its portfolio; and any updates to the market
regarding any of the foregoing. Although the Company believes that such statements are reasonable,
it can give no assurance that such expectations will prove to be correct, and any forward-looking
statements by the Company are not guarantees of future actions, results or performance (including,
there can be no assurance that the Company's vision or any of the described pending or ongoing
negotiations or discussions with Convertible Debenture holders or assessments of other interim
financing and other liquidity options, including corporate development and strategic opportunities,
result in any contemplated financing, restructuring or other liquidity outcome or the benefits resulting
therefrom). Forward-looking statements are based on assumptions, estimates, expectations and
opinions, which are considered reasonable and represent best judgment based on available facts, as
of the date such statements are made. If such assumptions, estimates, expectations and opinions
prove to be incorrect, actual and future results may be materially different than expressed or implied
in the forward-looking statements. Forward-looking statements are inherently subject to known and
unknown risks, uncertainties, contingencies and other factors which may cause the actual results or
performance of the Company to be materially different from any future results or performance
expressed or implied by the forward-looking statements including that the Extension, any further
restructuring of the Convertible Debentures and/or any other interim financing and other liquidity
options may not be completed and, if completed, may not have the intended or desired benefits,
failing which the Company will have to examine all other available options. Such risks, uncertainties,
contingencies and other factors include, among others, the "Risk Factors" in the Company's annual
information form dated March 31, 2023 (the "
2023 AIF
"), and the risks, uncertainties, contingencies
and other factors identified in this news release, the Company's Management's Discussion and
Analysis, and accompanying financial statements, for the year ended December 31, 2022 and
quarters already ended in 2023, and the Company's other applicable public disclosure (collectively,
"
Company Disclosure
"). The foregoing list of risks, uncertainties, contingencies and other factors is
not exhaustive; readers should consult the more complete discussion of the Company's business,
financial condition and prospects that is provided in the 2023 AIF and the other Company Disclosure.
The forward-looking statements referenced or contained in this news release are expressly qualified
by these Cautionary Statements as well as the Cautionary Statements in the other Company
Disclosure. Forward-looking statements contained herein are made as of the date of this news release
(or as otherwise expressly specified) and the Company disclaims any obligation to update any
forward-looking statements, whether as a result of new information, future events or results or
otherwise, except as required by applicable laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/174658