Excellon Resources (TSE:EXN), a Canadian silver producer operating in Mexico, completed its previously announced C$6.6mln financing.
The financing comprised C$5,610,000 principal amount of secured convertible debentures of the company and the sale of a net smelter return royalty on the Platosa Project for C$990,000, the Toronto, Ontario-based company said in a statement on Monday.
The debentures have a term of four years and are convertible into common shares of the company prior to maturity at a conversion price of $0.50 per common share.
The debentures shall bear interest at an annual rate of 3.75%, payable in cash semi-annually.
Interest on the debentures may alternatively be paid in common shares of the company at the company's option based on the 10-day volume-weighted average price of the common shares prior to the payment date and an effective rate of interest of 5% for the applicable period.
Shares were flat at C$0.25 at 12:28 p.m. in Toronto. The stock is down 62% this year.