Excellon Resources closes loan financing with Glencore

Executive Summary

• Excellon Resources Inc. closed a financing and offtake agreement with subsidiaries of Glencore PLC to fund the restart of its Mallay silver mine in Peru.
• The facility provides up to US$7.5 million in secured financing (initial drawdown US$5 M, optional US$2.5 M) at SOFR + 5% interest, with repayment beginning after a six‑month grace period and extending through 2027.
• Glencore received an exclusive right to purchase 100 % of Mallay’s zinc and lead concentrates (containing silver by‑product), securing a guaranteed outlet for the mine’s production.

Key Details

• Facility Size: Up to US$7.5 million in secured financing, structured as a pre‑export finance loan.
• Initial Drawdown: Up to US$5.0 million; optional second drawdown of up to US$2.5 million available until March 2026.
• Interest Rate: SOFR (secured overnight financing rate) + 5 percentage points.
• Repayment Terms: Six‑month grace period after initial drawdown, followed by monthly prepayments; final maturity in 2027.
• Security: Loan secured against concentrates sales and other guarantees provided by Excellon.
• Use of Proceeds: Finance restart of Mallay mine – underground development, mill upgrades, and working capital to achieve commercial production.
• Off‑take Agreement: Glencore entitled to purchase 100 % of Mallay’s zinc and lead concentrates (which contain silver as a by‑product), providing a long‑term offtake partner and exposure to upside in metal prices.
• CEO Quote: Shawn Howarth, President & CEO – “The closing of our agreement with Glencore marks a major milestone… With additional and flexible funding now secured, we continue to execute on our restart plan at Mallay – a project with exceptional infrastructure and near‑term cash flow potential.”

Notable Quotes

• Shawn Howarth: “The closing of our agreement with Glencore marks a major milestone in our journey to return Excellon to silver production. With additional and flexible funding now secured, we continue to execute on our restart plan at Mallay — a project with exceptional infrastructure and near‑term cash flow potential.”