Impact: Positive
Excellon announced that it is acquiring a 100% interest in the Mallay project, which includes the past-producing Mallay Ag mine and Tres Cerros exploration property in Peru. The project is owned by Minera CRC S.A.C (Minera) (Private), which is undergoing receivership proceedings. Excellon plans to acquire all the outstanding shares of Minera from Adar Mining Corp. (Private), which intends to bid for Minera during the proceedings. Excellon would pay US$1.25M in cash and issue shares equal to 12.9% of its issued and outstanding shares to Adar. To fund the upfront cost, it has arranged ~$3.8M in financing (consisting of ~$2M in equity and US$1.25M in debt). We view this as a transformational acquisition for Excellon that could return it to silver producer status as early as mid-2025. It would bring a fully permitted, debt-free, near-term silver-producing asset into its portfolio. For upfront consideration of ~US$2.5M in cash and shares, the company would acquire ~US$115M worth of historical infrastructure investment.
