Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) announced plans for a private placement offering of up to C$5 million, with prominent Canadian investor Eric Sprott participating as a lead order.
Net proceeds from the offering will be used to advance development of the Mallay Mine in Peru, as well as for working capital and general corporate purposes, the company said.
The best efforts private placement will see the sale of up to 47.6 million units at C$0.105 per unit, Excellon said in a statement.
Each unit will consist of one common share and one-half of a common share purchase warrant. A full warrant will allow the holder to acquire an additional share at C$0.15 for a period of three years following the closing date, which is expected on or around April 30, 2025.
The agents have been granted an option to sell up to an additional 7.14 million units, which could raise an extra C$750,000.
Excellon, a Toronto-based mining company, is focused on silver, lead, and zinc projects in the Americas.