Excellon Resources Inc. has completed the acquisition of the Mallay Silver Mine in Peru, including the Tres Cerros property. This previously operational mine has significant infrastructure in place. Excellon is set to conduct rehabilitation and exploration activities aimed at restarting production within a few months.
Excellon Resources Inc., listed on the TSX and OTCQB, has confirmed the completion of its acquisition of Minera CRC SAC, a corporate entity that owns the Mallay Silver Mine in Peru. This deal also encompasses the adjacent Tres Cerros gold-silver exploration property. The Mallay Mine, which has been historically operational, is fully permitted and boasts significant infrastructure such as a flotation plant and access to established grid power.
From 2012 to 2018, the mine was operated by Buenaventura, during which time it yielded over 18 million ounces of silver-equivalent. Now, under Excellon’s ownership, the Tres Cerros property spans around 2,000 hectares and features a promising corridor abundant with high-sulphidation gold-silver mineralization.
Excellon is gearing up to engage in both near-mine exploration at Mallay and preliminary surface mapping at Tres Cerros. In a statement following his visit to the Mallay Mine site, CEO Shawn Howarth voiced optimism regarding the condition of the existing infrastructure, noting, “the team’s readiness to execute.” He expressed confidence that it would take about four months to finish underground rehabilitation, paving the way for a production decision.
Not wasting any time, the company has signaled its intention to begin mine rehabilitation alongside technical studies immediately, aiming to support a reopening decision within the next three to six months. There’s also a mineral resource estimate based on historical data underway, which will involve reopening access to various underground levels and drilling to ascertain the potential for expanding known mineralization.
The acquisition, involving parties like Adar Mining Corp., Premier Silver Corp., and 1267104 B.C. Ltd., required a multi-faceted agreement. The deal terms included around $2.2 million in cash payments, the issuance of about 17.8 million common shares, and the transfer of existing obligations. Additionally, the transaction consists of royalty and streaming agreements, along with a back-in rights agreement that pertains to the Tres Cerros property.
Excellon Resources has finalized the acquisition of the Mallay Silver Mine and adjacent Tres Cerros property, signaling a proactive step toward reigniting silver production. With an established infrastructure and significant historical output, the mine represents a strategic asset for the company, which is set to conduct necessary rehabilitation and exploration in the upcoming months. This acquisition positions Excellon to capitalize on existing mineral resources while expanding its operational footprint.
Original Source: ca.proactiveinvestors.com