Excellon closes $12-million private placement

Executive Summary

• Excellon Resources Inc. closed a brokered private placement, raising gross proceeds of C$12 million from the sale of 60 million common shares at C$0.20 per share.
• Net proceeds will be used to advance development of the Mallay mine, fund working capital and general corporate purposes.
• The offering included full exercise of the agents’ option and a related‑party subscription by Eric Sprott’s entity for 10 million shares; agents were paid C$684,000 in cash fees.

Key Details

• Placement Size & Price: 60 million common shares sold at C$0.20 per share, generating C$12 million gross proceeds (including full exercise of the agents’ option).
• Agents & Bookrunners: Red Cloud Securities Inc. and Velocity Capital Partners (co‑lead agents/joint bookrunners) with Haywood Securities Inc., Beacon Securities Ltd., and Integrity Capital Group Inc. acting as additional agents under an agency agreement dated Sept. 9, 2025.
• Use of Proceeds: Net proceeds earmarked for advancing the Mallay silver mine development, working capital, and general corporate purposes (as detailed in the amended offering document).
• Regulatory Exemptions: Shares issued to Canadian residents under NI 45‑106 listed issuer financing exemption; U.S. investors received shares via a private placement exempt from the 1933 Securities Act; other jurisdictions followed applicable private‑placement rules.
• Agent Compensation: Cash fees of C$684,000 paid to agents for services rendered.
• Related‑Party Transaction: Eric Sprott, through 2176423 Ontario Ltd., subscribed for 10 million shares on the same terms as arm’s‑length investors; transaction qualifies as a related‑party transaction under MI 61‑101 but is exempt from formal valuation and minority shareholder approval due to size thresholds.
• Closing Conditions: Offering subject to final acceptance by the TSX Venture Exchange.

Notable Quotes

(No direct quotes were provided in the release.)