Excellon Resources Inc (TSX:EXN, OTCQB:EXNRF) has announced a brokered private placement of up to 40 million common shares at C$0.20 per share, targeting gross proceeds of up to C$8 million.
The financing is being led by Red Cloud Securities and Velocity Trade Capital as co-lead agents and joint bookrunners.
The syndicate of agents has also been granted an option to sell up to an additional 5 million shares, which could increase total proceeds by C$1 million.
Excellon said it plans to use the net proceeds primarily to advance development of the Mallay Mine in Peru.
The remaining funds will be allocated to working capital and general corporate purposes.
The offering is expected to close on or around September 9, subject to customary conditions and regulatory approvals.