Toronto Stock Exchange - EXN
TORONTO, March 26, 2013 /CNW/ - 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
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 companies and 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
increasing La Platosa's mining workforce to further facilitate increased
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
Proposal to Streamline Excellon's Capital Structure
The Board of Directors has proposed the consolidation of the Company's
common shares on a five-for-one basis (the "Consolidation"). The Board
is convinced that the Consolidation will contribute to immediate and
long-term shareholder value post-Consolidation by, among others:
increasing the breadth and sophistication of the Company's eligible
increasing trading volume in the stock through a broader investor base;
increasing the valuation level and investment profile of the common
shares as the Company should no longer be considered a "penny stock"
aligning the nominal market price of the common shares with those of the
If approved, the Consolidation would reduce the Company's current
274,960,967 issued and outstanding common shares to approximately
54,992,193 common shares. The number and exercise price of outstanding
stock options would be proportionately adjusted based upon the same
The Consolidation is subject to the approval of the Toronto Stock
Exchange and two-thirds of Excellon's shareholders.
Full details of the Consolidation will be included in the management
information circular (the "Circular") to be mailed on April 3, 2013 to
all Excellon shareholders of record as of March 26, 2013 in connection
with the Annual and Special Meeting of Shareholders to be held on
Tuesday, April 30, 2013. The Circular will also be posted and
available on SEDAR at www.sedar.com.
Exceptional Candidates Nominated for Election to Excellon's Board
The Board of Directors has nominated Ned Goodman, and Joanne Ferstman
for election to one of the strongest boards in the junior mining
industry. Mr. Cahill, currently President, was appointed as Chief
Executive Officer by the Board. Mr. Cahill will also stand for
election to the Board of Directors at the upcoming Annual and Special
Ned Goodman has been a leader in the global mining industry for more
than four decades and is widely recognized as one of Canada's most
successful investment counselors. He is the President and CEO of
Dundee Corporation, an independent asset management company focused in
the areas of real estate and infrastructure, energy, resources and
agriculture, and President, CEO and Chief Investment Officer of Ned
Goodman Investment Counsel Limited ("NGIC"), a portfolio manager.
Mr. Goodman is the founder and benefactor of the Goodman Institute of
Investment Management, a graduate school for investment management at
Concordia University, and the Goodman School of Mines, which is under
development at Laurentian University. He is also the Chancellor of
Brock University in Ontario, Chairman Emeritus of the Canadian Council
of Christians and Jews, a Governor of Junior Achievement of Canada and
a former Director of the Mount Sinai Hospital Foundation. He is also a
founding director of the Roasters Foundation, the Jodamada Foundation
and the Dynamic Fund Foundation.
Mr. Goodman holds a B.Sc. in geology from McGill University and an
M.B.A. from the University of Toronto. He earned the designation of
Chartered Financial Analyst in 1967. In 1997, he was awarded a
Doctorate of Laws, honoris causa, by Concordia University.
Mr. Goodman controls, directly or indirectly a total of 17,748,000
common shares of the Company.
Joanne Ferstman has over two decades of experience in the capital
markets, financial services and mining industries, including most
recently being a director and Chair of the Audit Committee of
Breakwater Resources Inc. She is currently a corporate director and
sits on the boards of Dundee REIT, Dundee Industrial REIT and Aimia
Inc. Ms. Ferstman was most recently the President and Chief Executive
Officer of Dundee Capital Markets Inc.
Ms. Ferstman was also previously Vice-Chair and Head of Capital Markets
of DundeeWealth Inc., a diversified wealth management public company
that managed over $75 billion of assets, including the family of
Dynamic Funds prior to its sale to the Bank of Nova Scotia in 2011.
Prior to 2009, Ms. Ferstman was Executive Vice President and Chief
Financial Officer of DundeeWealth Inc. and Executive Vice President,
Chief Financial Officer and Corporate Secretary of Dundee Corporation.
In these senior financial roles, Ms. Ferstman was intimately involved
in all corporate strategy, including acquisitions and financings, and
had ultimate responsibility for all public financial reporting.
Ms. Ferstman is a Chartered Accountant and holds a Bachelor of Commerce
and Graduate degree in Public Accountancy from McGill University.
Mr. Cahill has been President of Excellon since November 2012 and joined
the Company as Executive Vice President in summer 2012. Since joining
the Company, he has significantly advanced the Company's profile with
the communities near La Platosa, all levels of Mexican government and
the Company's investor base.
Mr. Cahill was previously Vice President Corporate Development of
Pelangio Exploration Inc., a junior gold exploration company active in
Ghana, West Africa, and served as Corporate Secretary of Pelangio Mines
Inc., prior to its merger with Detour Gold Corporation. Prior to
Pelangio, he was a lawyer in the M&A and corporate securities practices
at Davies Ward Phillips & Vineberg LLP.
Mr. Cahill holds a law degree from the University of Western Ontario and
an undergraduate degree from the University of Toronto.
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
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
Section 27A of the Securities Act and Section 27E of the Exchange Act.
Such statements include, without limitation, statements regarding the
future results of operations, performance and achievements of the
Company, 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 (including the proposed
consolidation), 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 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.
For further information:
Excellon Resources Inc.
Joanne C. Jobin, Vice President, Investor Relations
T. (416) 364-1130 E. firstname.lastname@example.org