TORONTO, ON --(Marketwired - November 16, 2016) - Excellon Resources Inc. (
Of principal importance, the Agrarian Tribunal ruled favourably on the Company's application to rescind the SRA. Excellon commenced a proceeding in 2012 to rescind the SRA and for various damages relating to an illegal blockade of Platosa by the Ejido. The Company sought rescission of the SRA to limit ongoing risks to Platosa production. This decision was further justified by capital market conditions in recent years and represents a reduction in annual expenditures of almost US$400,000 at current exchange rates.
"We are pleased with this resolution, which under the circumstances is a just decision by the Agrarian Tribunal," stated Brendan Cahill, President and Chief Executive Officer. "We continue to make meaningful cooperative investments in our local community of Bermejillo and look forward to re- engaging with the Ejido La Sierrita on fair and transparent terms in due course."
The Resolution also included (i) an award to Excellon of 5.6 million pesos payable by the Ejido for losses and damages related to the illegal blockade and (ii) an award to the Ejido of 5.5 million pesos payable by Excellon as indemnity for not building a water treatment plant under the terms of the SRA. The two awards set-off against each other, with Excellon not being required to pay any amount to the Ejido. The Company is considering next steps in respect of the award to the Ejido, as the construction of this plant was contingent upon certain conditions precedent that the Ejido never satisfied, including the acquisition of a water use permit by the Ejido.
Excellon owns all surface rights and mineral rights needed to produce silver from the Platosa Mine and conduct further surface and underground exploration for further high-grade manto mineralization and the CRD/Source of the Platosa mantos. The Company holds approximately 21,000 hectares of mineral and mining rights at Platosa, which entitle the Company to explore for and mine minerals at Platosa and in an extensive surrounding area, including under any surface rights held by the Ejido.
About Excellon
Excellon's 100%-owned Platosa Mine in Durango has been Mexico's highest-grade silver mine since production commenced in 2005. The Company is focused on optimizing the Platosa Mine's cost and production profile, discovering further high-grade silver and CRD mineralization on the Platosa Project and capitalizing on the opportunity in current market conditions to acquire undervalued projects in Latin America.
Additional details on the Platosa Mine and the rest of Excellon's exploration properties are available at www.excellonresources.com .
Forward-Looking Statements
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release, which has been prepared by management. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced [particularly silver], the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the July 9, 2015 NI 43-101-compliant technical report prepared by Roscoe Postle Associates Inc. with respect to the Platosa Property. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
For Further Information, Please Contact: Excellon Resources Inc. Brendan Cahill President & CEO or Nisha Hasan Director, Investor Relations (416) 364-1130 info@excellonresources.com www.excellonresources.com
