The past-producing Mallay mine in Peru. Credit: Excellon Resources
Shares of Excellon Resources (TSXV: EXN) rose on Wednesday after closing an offtake and financing agreement with Glencore to support the restart of its Mallay silver mine in Peru.
The parties first entered into the agreement in late May, under which Glencore would provide up to $7.5 million in pre-export loan secured by concentrate production from the Mallay mine. The loan comprises an initial drawdown of up to $5 million, followed by a six-month grace period, and an optional second amount of $2.5 million available until March 2026.
The Anglo-Swiss trading giant also committed to buy all of the mine’s zinc-lead production until 2028-2029.
Shares of Excellon traded 5.5% higher at C$0.24 apiece on the announcement. This gives the Toronto-based silver miner a market capitalization of C$59.2 million ($42.6m).
“The closing of our…
