Excellon Resources Inc shares climbed 22% to $0.45 on Monday after the gold, silver and base metals projects developer announced that it is considering various alternatives to complement the company's go-forward strategy, which could include acquisitions, divestitures, mergers or spin-offs of Excellon's or third parties' assets.
The company also said it will be reversing a US$22 million liability from its March 31, 2023, consolidated balance sheet as a result of the Mexican Bankruptcy Court declaring one of its care-and-maintenance subsidiaries bankrupt effective March 28, 2023, which Excellon noted is an “overhang that has been with the company since 2019.”
“Over the past four months, I'm very proud of our management team that has successfully addressed major discounts to Excellon's value potential: the pending maturity of our outstanding convertible debentures, for US$11 million, and this provision for litigation,” Excellon Resources CEO Shawn Howarth said in a statement.
“We have reset Excellon's corporate strategy, restructured current liabilities by over US$33 million and added to a portfolio of already high-quality, long-term assets in particular at La Negra and Kilgore,” he added.
Excellon Resources is advancing a portfolio of gold, silver and base metals assets including Kilgore, an advanced gold exploration project in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration.
The company has also entered into an agreement to acquire La Negra, a past-producing silver-zinc-copper-lead mine, with exploration potential, located in Querétaro State, Mexico.
Contact Sean at sean@proactiveinvestors.com