EXCELLON ANNOUNCES $3,000,000 INVESTMENT BY ERIC SPROTT
Toronto, Ontario – March 31, 2016 – Excellon Resources Inc. (TSX:EXN; OTC:EXLLF) ("Excellon" or the “Company"), Mexico’s highest grade silver producer, is pleased to announce a non-brokered equity private placement (“the Financing”) in the Company by Eric Sprott for gross proceeds of C$3,000,000 through the issuance of 6,666,667 units (each a “Unit”) at a price of $0.45 per unit. Each Unit will consist of one common share and one half-share purchase warrant of the Company (“Warrant”). Each full Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.65 per share for a period of 24 months from the closing date.
The proceeds from the Financing will be used in the ongoing implementation of the previously announced Optimization Plan at the Platosa Mine (see press release dated November 2, 2015) and for general corporate purposes. Phase II of the Optimization Plan is expected to commence in early April with the drilling of primary dewatering wells.
A finder’s fee of $60,000 was paid in respect of the investment. The Common Shares issued pursuant to the Financing or the subsequent exercise of the Warrants shall be subject to a four-month hold period from the closing date of the Financing in accordance with applicable securities legislation.
The closing of the Financing is expected to occur on or before April 8, 2016 and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange.
