The Peru deal includes a $1.3 million cash payment to privately held Adar Mining and an equity stake of 12.9% in Excellon. Excellon will also pay a 1% net smelter royalty and provide a zinc and lead stream to Adar.
President and CEO Shawn Howarth said he expects Excellon to regain producer status soon. He said the deal removed a debt overhang on the asset, clearing it for a rapid restart.
“Excellon’s operational expertise sets the foundation for a highly collaborative and productive partnership (with Adar),” he said in a news release on Thursday. “Upon closing the transaction, our immediate focus will be on mine rehabilitation, finalizing restart plans, conducting near-mine drilling to extend mineralization and mine life, and demonstrating the robust economics of the mine.”
Excellon’s acquisition depends on Adar Mining first securing the Mallay mine and Tres Cerros assets through Canadian bankruptcy…
