Excellon Resources Closes Acquisition of Mallay Silver Mine in Peru

Excellon Resources has acquired the Mallay Silver Mine and adjacent Tres Cerros property in Peru. The acquisition includes existing infrastructure and plans for rehabilitation and exploration. CEO Shawn Howarth expressed confidence in resuming silver production within four months. The deal involved cash payments and share issuance totaling approximately US$2.2 million, alongside additional agreements for royalties and back-in rights.

Excellon Resources Inc. has successfully finalized its acquisition of Minera CRC SAC, a Peruvian firm that owns the Mallay Silver Mine, announced the company early this morning. The deal also extends to the adjacent Tres Cerros gold-silver exploration property, which enhances Excellon’s portfolio significantly. The Mallay Mine is already fully permitted and has a history of production, previously yielding silver-lead-zinc before its operations ceased in 2018.

The Mallay Mine has a solid infrastructure, featuring a flotation plant and access to grid power, making it a strategic asset for Excellon. During its operation by Buenaventura from 2012 until 2018, the mine produced more than 18 million silver-equivalent ounces, which points to its potential. Meanwhile, the nearby Tres Cerros property spans roughly 2,000 hectares, which is known for its rich high-sulphidation gold-silver mineralization corridor.

Looking ahead, Excellon has plans for exploration efforts in both the Mallay area and Tres Cerros, with immediate attention to near-mine activities at Mallay and initial surface mapping at Tres Cerros. Company CEO Shawn Howarth expressed optimism after a recent site visit, remarking, “We are pleased with the condition of the existing infrastructure and the team’s readiness to execute. We are confident that the underground rehabilitation can be completed within a four-month period.”

This acquisition marks a significant milestone for Excellon, as they aim to revive silver production. Technical studies and mine rehabilitation efforts are set to begin promptly, with hopes of revisiting production decisions in the next three to six months. To facilitate this strategic advancement, a mineral resource estimate based on earlier data is currently underway, which also involves drilling efforts to further delineate known mineralization areas and re-establish access to underground levels.

The acquisition had a total consideration of approximately US$2.2 million in cash, along with over 17.8 million common shares issued and the assumption of existing liabilities. Additionally, the deal includes various royalty and streaming agreements and a back-in rights agreement related to the Tres Cerros property, adding further value to Excellon’s operational capabilities in the region.

Excellon Resources has successfully acquired the Mallay Silver Mine and Tres Cerros exploration property in Peru, marking a significant step toward resuming silver production. With its established infrastructure and a robust historical production record, the mine presents promising opportunities. The company is poised to begin mine rehabilitation and exploration activities, underscoring its commitment to advancing its assets in the region.

Original Source: ca.proactiveinvestors.com