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Toronto Stock Exchange - EXNTORONTO,
March 26, 2013 /PRNewswire/ -
Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company"),
Mexico's highest grade silver producer, is pleased to announce strategic revisions to the Company's business plan, improvements to its capital structure and additions to its Board of Directors. Highlights include:
Revision of near-term business strategy to focus on increasing production, cash flow and mine life and to position the Company to capitalize more effectively on developing market opportunities;
Proposal to improve the investment attraction of the Company's common shares by consolidating the outstanding common shares on a five-for-one basis;
Appointment of Brendan Cahill as Chief Executive Officer; and
Nomination of Ned Goodman, CEO of Dundee Corporation, Joanne Ferstman, former CEO of Dundee Capital Markets Inc., and Brendan Cahill for election to the Board of Directors.
The current mining investment market is providing opportunities seldom seen in a generation," stated
Peter Crossgrove, Executive Chairman. "
We are positioning ourselves to seize these opportunities and build Excellon into another of Mexico's successful mid-tier silver producers by refocusing on the basics -
the yet-to-be-realized potential for increased production and mine life at our high-grade, low cost and profitable La Platosa Mine."
We will also seek shareholder approval to streamline our capital structure by consolidating the Company's common shares on a five-for-one basis. The Board believes that La Platosa's strong cash flow will fund future growth in both production and mine life without requiring further equity financing. We are convinced, therefore, that the proposed consolidation should improve long-term shareholder value by broadening the potential investor base, raising market visibility and enhancing the perceived value of the Company's common shares."
Mr. Crossgrove continued, "
The Board of Directors is pleased to announce the nomination for election of Ned Goodman and Joanne Ferstman.
They are founders and builders of internationally successful mining and financial companiesand bring exceptional business, financial and capital market experience to the Company. We are also pleased to announce the appointment of Brendan Cahill, currently President, as Chief Executive Officer of Excellon. He will also be standing for election to the Board of Directors at the upcoming Annual and Special Meeting of Shareholders. These nominees add to last year's appointment of Oliver Fernández and the high level Mexican business and government relationships that he brings to the table."
Excellon's Business Strategy The valuation of many promising exploration, resource development and development stage projects continue to be affected by ongoing volatile market conditions. The Board of Directors has revised the Company's business strategy to focus on increasing Excellon's relative advantages in this market: high-grade/low-cost production, consistent cash flow and mineable resources. This focus should deliver better market valuation and enhance the Company's ability to capitalize on the decreasing valuations of assets and companies that do not currently have cash flow.
During 2013, Company management will be focused on:
optimizing mining operations with the aid of external consultants to increase production materially beyond the budgeted rate of 200 tonnes per day;
increasing La Platosa's mining workforce to further facilitate increased production;
seeking custom milling opportunities and small mine acquisitions in the states of Durango, Zacatecas and San Luis Potosi to better utilize the Company's Miguel Auza Mill, which is currently running at 55% capacity;
redirecting primary exploration efforts to define further high-grade manto mineralization near existing mining infrastructure; and
as always, seeking to reduce costs at all levels of the business, particularly those not immediately associated with mine production.
The Company's exploration program at La Platosa now contemplates 58,000 metres of lower cost drilling, primarily focused on expanding existing high-grade mantos resources. Exploration will continue for Source-style mineralization, though at a more measured pace in the near term. The Company's geologists will continue to plan further exploration for Source-style mineralization and will drill selective Source targets throughout the year. The Company expects to release further drill results from the Source exploration program in due course.