Toronto Stock Exchange - EXN
TORONTO, June 28, 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 yesterday afternoon, Excellon proposed the purchase or lease of 10 hectares from the Ejido based on a court-supervised appraisal of the value of these particular hectares. The Ejido representatives reluctantly advised the Court that the Company's proposal would be brought before the Ejido general assembly for review and consideration. The next hearing date is scheduled for July 15, 2013.
"We have proposed and are willing to discuss a rational resolution that will benefit our employees, the residents of Bermejillo, Mapimi and La Sierrita, our other stakeholders and our shareholders," stated Brendan Cahill, President and CEO. "Our aims are to ensure the health, safety and wages of our workers and cooperative and effective investment in local communities. We will pursue the necessary avenues to ensure a just and equitable resolution of this dispute that provides lasting benefits for all of our stakeholders, including the residents of La Sierrita."
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. This decision has since been solidified by current capital markets conditions and has become an element of Excellon's business strategy. 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 during 2013. Excellon will also continue its suit against the Ejido for damages relating to the illegal blockade of the mine last year.
Excellon owns all surface rights and mineral 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. The Company holds approximately 41,000 hectares of mineral and mining rights at La Platosa which 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'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.