Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) said on Wednesday it had closed an C$8 million brokered private placement, including a lead investment from Canadian financier Eric Sprott and the full exercise of the agents’ option.
The Toronto-based mining company sold 76.2 million units at C$0.105 per unit, each consisting of one common share and half a warrant. Each whole warrant allows the holder to purchase a common share at C$0.15 until May 2028.
Proceeds from the offering will be used to advance development of Excellon’s Mallay Mine in Peru, as well as for general corporate purposes and working capital, the company said.
Sprott, a well-known resource sector investor, acquired 15.2 million units for C$1.6 million. Following the transaction, he owns or controls about 9.5% of Excellon’s common shares on a non-diluted basis and 12.8% on a partially diluted basis, assuming full exercise of his warrants.