Excellon Closes Debenture Restructuring
Excellon Closes Debenture Restructuring
Toronto, Ontario--(Newsfile Corp. - March 28, 2024) -
Excellon Resources Inc. (TSX: EXN) (OTCQB:
EXNRF) (FSE: E4X2) ("Excellon"
or the
"Company")
is pleased to announce that it has closed its
previously announced restructuring of the outstanding 5.75% secured convertible debentures of the
Company (the "
Debentures
") to reduce the outstanding principal amount of the Debentures to C$7.5
million, representing a 58% reduction in principal, and to amend the terms of the remaining Debentures
(collectively, the "
Debenture Restructuring
").
Shawn Howarth, President and CEO, commented, "The Debenture Restructuring is a significant first
step towards equity growth for Excellon shareholders. The reduction and extension of the remaining
Debentures provides our shareholders with increased exposure to a high quality gold project at Kilgore,
and an emerging European-focused silver exploration opportunity at Silver City."
Debenture Repurchase
The Company has completed the repurchase for cancellation of C$10,410,000 aggregate principal
amount of the Debentures (the "
Debenture Repurchase
")
pro rata
from the holders of the Debentures
in exchange for the following aggregate consideration divided
pro rata
among the holders of the
Debentures:
38,888,878 common shares in the capital of Excellon ("
Common Shares
");
contingent value rights of Excellon, providing for aggregate cash payments equal to the equivalent
of up to 1,500 troy ounces of gold upon the achievement of certain milestones;
a 2% net smelter returns royalty on the unpatented claims comprising the Kilgore Project; and
a 25% interest in Saxony Silver Corp., which holds the Silver City Project.
Additionally, in connection with the Debenture Repurchase, the Company issued 2,846,147 Common
Shares in satisfaction of accrued and unpaid interest on the Debentures to, but excluding, the date of the
Debenture Repurchase.
Registered holders of the Debentures will receive a notice regarding the Debenture Repurchase and are
advised to read the notice carefully as it contains important instructions on how to receive the
consideration for the Debenture Repurchase to which they are entitled. Non-registered holders of the
Debentures should contact their broker or other intermediary for instructions on how to receive the
consideration for the Debenture Repurchase to which they are entitled.
Debenture Amendment
The Company also amended the terms of the remaining C$7.5 million aggregate principal amount of the
Debentures as follows (the "
Debenture Amendment
"):
Extended the maturity date of the Debentures from July 31, 2024 to August 31, 2026;
Decreased the conversion price from C$5.30 to C$0.10 per Common Share; and
Increased the interest rate payable in cash from 5.75% per annum to 6.50% per annum, while
retaining the Company's option to satisfy interest in Common Shares at an effective interest rate of
10% per annum.
The Debenture Restructuring remains subject to the final approval of the Toronto Stock Exchange.
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 management team for the benefit of
our employees, communities and shareholders. The Company is advancing a portfolio of gold, silver and
base 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 little
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 anticipated effects of the Debenture Restructuring,
the timing and ability of the Company to obtain required regulatory approvals for the Debenture Restructuring, including the final approval of the
Toronto Stock Exchange; exploration and drilling programs, including the timing, completion and results thereof; potential mineralization; and the
Company's objectives, goals and future plans and strategies. 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. 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. Such risks, uncertainties, contingencies and other factors include, among others, the
inability of the Company to receive necessary regulatory approvals, the availability and cost of financing needed in the future, 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 the Company's Management's Discussion and Analysis, and accompanying financial statements, for the year ended December 31,
2022 and quarters 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.
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