Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) announced that it has completed its acquisition of Minera CRC SAC, a Peruvian company holding 100% ownership of the Mallay Silver Mine and the adjacent Tres Cerros gold-silver exploration property.
The Mallay Mine is a fully permitted, previously producing underground silver-lead-zinc operation with existing infrastructure, including a flotation plant and grid power access.
Historically operated by Buenaventura from 2012 to 2018, the mine produced over 18 million silver-equivalent ounces during that period.
The nearby Tres Cerros property comprises approximately 2,000 hectares and includes a corridor of high-sulphidation gold-silver mineralization.
Excellon intends to pursue both near-mine exploration at Mallay and early-stage surface mapping at Tres Cerros.
"After returning from the Mallay Mine site and meeting with our operations and restart team, we are pleased with the condition of the existing infrastructure and the team's readiness to execute,” Excellon CEO Shawn Howarth said in a statement.
“We are confident that the underground rehabilitation can be completed within a four-month period, after which we will be positioned to make a production decision. This marks the beginning of a new chapter for Excellon as we decisively advance our goal of returning to silver production.”
The company plans to start mine rehabilitation and technical studies immediately, with the goal of supporting a restart decision within three to six months.
A mineral resource estimate based on historical data is underway, along with reopening access to underground levels and drilling to expand known mineralization.
The acquisition was completed through a series of agreements involving Adar Mining Corp., Premier Silver Corp., and 1267104 B.C. Ltd.
Consideration included approximately US$2.2 million in cash payments, the issuance of over 17.8 million common shares, and the assumption of existing obligations.
The transaction also includes royalty and streaming agreements, as well as a back-in rights agreement covering the Tres Cerros property.