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TORONTO, Nov. 9, 2017 /CNW/ - Excellon Resources Inc.
(TSX:EXN; EXN.WT; EXN.WT.A) ("Excellon" or the "Company")
is pleased to announce that it has closed its previously announced
bought deal public offering of 7,393,750 units (collectively, the
"Units"), including 768,750 Units issued upon partial exercise of
the over-allotment option, at a price of $2.00 per Unit for aggregate gross proceeds of
approximately $14.8 million (the
"Offering"). The Offering was underwritten by Cantor Fitzgerald
Canada Corporation, as sole bookrunner and together with PI
Financial Corp. as co-lead underwriter, on its own behalf and on
behalf of Cormark Securities Inc., Desjardins Securities Inc. and
Maison Placements Canada Inc.
As previously announced, each Unit consists of one common share
in the capital of the Company (each a "Common Share") and one-half
of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant shall entitle the holder to acquire one
additional Common Share at a price of $2.80 at any time on or before December 31, 2018. The Warrants are listed on the
Toronto Stock Exchange under the symbol EXN.WT.A.
The Company intends to use the net proceeds of the Offering to
fund exploration at the Company's Platosa Project in Durango, Mexico and Miguel Auza Project in
Zacatecas, Mexico and for general
corporate purposes. For additional details regarding the use of
proceeds of the Offering, please see the Company's short form
prospectus dated November 2, 2017
that is available under the Corporation's profile on SEDAR at
www.sedar.com.
In connection with the Offering, Eric
Sprott purchased 1,250,000 Units (for total consideration of
$2,500,000) and, based on Mr.
Sprott's SEDI filings, now holds an aggregate of 16,261,182 Common
Shares and 6,871,746 warrants, representing a 19.2% interest in the
Company on a non-diluted basis and a 25.3% interest on a partially
diluted basis assuming the exercise of all warrants held by Mr.
Sprott (prior to the Offering, Mr. Sprott held 15,011,182 Common
Shares and 6,246,746 common share purchase warrants). Mr.
Sprott received approval from the Company's shareholders at the
most recent annual and special meeting to purchase up to 32% of the
Company's issued and outstanding Common Shares on a partially
diluted basis.
The Company has been advised that the Units acquired by Mr.
Sprott were acquired for investment purposes. Mr. Sprott has
a long-term view of the investment and may acquire additional
Common Shares either on the open market or through private
acquisitions or sell the Common Shares either on the open market or
through private dispositions in the future depending on market
conditions, reformulation of plans and/or other relevant
factors. A copy of Mr. Sprott's early warning report will
appear on the Company's profile on SEDAR at www.sedar.com and may
also be obtained by calling (416) 362-7172 (200 Bay
Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).
The securities offered in the Offering have not been, and will
not be, registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Excellon
Excellon's 100%-owned Platosa Mine in Durango has been
Mexico's highest-grade silver mine
since production commenced in 2005. The Company is focused on
optimizing the Platosa Mine's cost and production profile,
discovering further high-grade silver and carbonate replacement
deposit (CRD) mineralization on the Platosa Project and epithermal
silver mineralization on the Miguel Auza Property and capitalizing
on the opportunity in current market conditions to acquire
undervalued projects in Latin
America.
Forward-Looking Statements
The Toronto Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content
of this Press Release, which has been prepared by management. This
press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Such
forward-looking statements include, without limitation, statements
regarding the closing of the Offering, the timing of the closing of
the Offering, the use of proceeds from the Offering, the receipt of
regulatory approvals, the exercise of the Over-Allotment Option and
future results of operations, performance and achievements of the
Company. Although the Company believes that such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements
are typically identified by words such as: believe, expect,
anticipate, intend, estimate, postulate and similar expressions, or
are those, which, by their nature, refer to future events. The
Company cautions investors that any forward-looking statements by
the Company are not guarantees of future results or performance,
and that actual results may differ materially from those in
forward-looking statements as a result of various factors,
including the Company's inability to obtain any necessary permits,
consents or authorizations required for its activities, to produce
minerals from its properties successfully or profitably, to
continue its projected growth, to raise the necessary capital or to
be fully able to implement its business strategies. This press
release is not, and is not to be construed in any way as, an offer
or recommendation to buy or sell securities in Canada or in the
United States.
Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance and actual events, results and/or developments may
differ materially from those in the forward-looking statements.
Readers should not place undue reliance on the Company's
forward-looking statements. The Company does not undertake to
update any forward-looking statement that may be made from time to
time by the Company or on its behalf, except in accordance with
applicable securities laws.
SOURCE Excellon Resources Inc.