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.
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.