Toronto Stock Exchange - EXN
TORONTO, May 9, 2013 /PRNewswire/ - Excellon Resources
Inc. (TSX:EXN) ("Excellon" or the "Company"), Mexico's highest grade silver producer, is
pleased to provide an update on the status of its agrarian legal
suit against the Ejido La Sierrita (the "Ejido"), which was filed
in August 2012. Excellon sued
the Ejido to terminate the surface
rights agreement ("SRA") in respect of the surface rights to 1,100
hectares of exploration ground west of the La Platosa Mine and for
various damages relating to the illegal blockade of the mine last
year. The Ejido also sued
for termination of the SRA one week after being advised of
Excellon's suit.
At a hearing of the Agrarian Court held today,
the formal return of the 1,100 hectares leased under the SRA was
postponed pending further negotiations in respect of 10 particular
hectares. Excellon and the Ejido
have agreed to enter into Agrarian Court-supervised negotiations
for the outright sale of those 10 hectares to the Company.
The next hearing date for such negotiations is scheduled for
June 27, 2013.
"We remain firmly on track for the best and
most economically beneficial resolution of this dispute for our La
Platosa Mine, our employees, the residents of Bermejillo, Mapimi and La
Sierrita, our other stakeholders and our shareholders,"
stated Brendan Cahill, President and
CEO. "Our intended solution should ensure the security of
the Mine, the health, safety and wages of our workers and the most
effective, long-term investment and development plans with our
local neighbours."
The decision to terminate the SRA (refer to
press release dated September 10,
2012) was driven by the need to limit the risk exposure of
the SRA on La Platosa production capabilities. This decision
has since been solidified by current capital markets conditions and
has become an element of Excellon's business strategy. As the
Company focuses on optimizing high-grade, low-cost production,
increasing cash flow and expanding high-grade and near term
mineable resources at the La Platosa Mine, the termination of the
SRA will result in reduced expenditures of over US$600,000 annually and near-term savings of
approximately US$600,000 in
2013. Excellon also intends to continue its suit against the
Ejido for damages relating to the
illegal blockade of the mine.
Excellon holds approximately 41,000 hectares of
mineral and mining rights at La Platosa. These rights entitle the
Company to explore for and mine minerals at La Platosa and in an
extensive surrounding area, including under any surface rights held
by the Ejido. Excellon also
owns all surface rights needed to produce silver from the La
Platosa Mine and conduct further surface and underground
exploration for further high-grade manto mineralization and the
CRD/Source of the La Platosa mantos.
About Excellon
An Evolution in High-Grade Silver: Excellon's
100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead
and zinc by-products making it one of the lowest cash cost silver
mines in the country. The Company is positioning itself to
capitalize on undervalued projects by focusing on increasing La
Platosa's profitable silver production and near-term mineable
resources.
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
within the meaning of applicable securities laws. Such statements
include, without limitation, statements regarding the future
results of operations, performance and achievements of the Company,
including potential property acquisitions, the timing, content,
cost and results of proposed work programs, the discovery and
delineation of mineral deposits/resources/reserves, geological
interpretations, proposed production rates, potential mineral
recovery processes and rates, business and financing plans,
business trends and future operating revenues. Although the Company
believes that such 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, but not limited to, variations in the
nature, quality and quantity of any mineral deposits that may be
located, significant downward variations in the market price of any
minerals produced, particularly silver, 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. All of the Company's public disclosure filings
may be accessed via www.sedar.com and readers are urged to review
these materials, including the technical reports filed with respect
to the Company's mineral properties, and particularly the
November 22, 2011 NI 43-101-compliant
technical report prepared by Roscoe Postle Associates Inc. with
respect to the La Platosa Property. This press release is not, and
is not to be construed in any way as, an offer to buy or sell
securities in the United
States.
SOURCE Excellon Resources Inc.
